Question

Click to see additional instructions 4. You short-sell 200 shares of Rock Creek Fly Fishing Co. today at $50 per share. If you want to limit your loss to $2,500, $ is the maximum price per share you should place when you close your position? (Round your answer to the first decimal place) 2019 illinois State University An equal opportunity/affirmative action university encouraging diversity Privacy Statement. Sakai Accessibility. Identity Standards. Appropriate Use Policy For questions contact us /samigo-app/jsf/delivery/deliver Assessment faces 81 O 15 search DOLL DELE a 03 $ 4 % 5 0 > 8 7 8 3 o Р Y T V R E

Answer 1

Solutions Given pal tieglass $ Acquaired on shott selling of 200 shares of Rock creek fly fishing co, Today = $sof share 200 x $ 50 $10,000 -7 to close the position of short selling, we should Buy the share and it should be giren Back to the lender of the share. If the loss is limiting to $ 8,500 Maximum Amount reqnuved $10,000 + $ 2500 of out flow $ 12,500 200 total no of Shares $12,500 purchase price of Share $ 62.50 200 Justification purchase price $ 62.50 $ 50.00 coutflow) selling price (flow) Loss / share $ 12.50 =) 12.50 x 200 $ - Maximum lost