1. ms. brown sold short 100 shares of common stock at $78 per share. the price has declined to $69 the next day. if she covers, what will be the gain or loss on this trade, ignoring transaction cost and stock lending fee?

a. $9 loss

b. $9 gain

c. $900 loss

d. $900 gain

2.speculators in the futures markets

a. make the market more volatile

b. serve no real economic function

c. contribute liquidity in the market

d. engage mainly short sales