Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9. A short-seller decides to short Facebook at the current price of $150, and he intends to limit loss at $10 a share on his
9. A short-seller decides to short Facebook at the current price of $150, and he intends to limit loss at $10 a share on his short positions. Which one of the following strategy should be used? (a) put in a stop-buy order at $160. (b) put in a stop-buy order at $140. (c) put in a stop-loss order at $160. (d) put in a stop-loss order at $140. 10. A short-seller shorted 10 shares of Facebook three months ago at the price of $180 share. He later covered his short position by buying 10 shares of Facebook at $150/share and returned them to the stock lender. Facebook doesn't issue dividends. His profit is equal to ---- (a) $-300 (b) $300 (c) $1600 (d) $1300
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started