Jones sells short 100 shares of MNOP stock at $62.50 per share and six months later...
Jones sells short 100 shares of MNOP stock at $62.50 per share and six months later purchases the shares at $58.00 each. Ignoring brokerage fees, Nancy will
A. Lose a total of $101.25
B. earn a total profit of $1,112.50
C. earn a total profit of $112.50
D. lose a total of $112.50
Homework Answers
Gain = [Short Sell Price - Purchase Price] * No. of Shares
= [$62.50 - $58] * 100 = $4.50 * 100 = $450
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