P2.3 Elmo Limited’s shares are currently selling at $6 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Maureen Katz realises if she makes a 1000-share transaction.

a. She sells short and repurchases the borrowed shares at $7 per share.

b. She takes a long position and sells the shares at $7.50 per share.

c. She sells short and repurchases the borrowed shares at $4.50 per share.

d. She takes a long position and sells the shares at $6 per share.