Chapter 11 Assightt Scenario Rina notices that Ford Motor Company's stock is trading at $11.57 the day before it is scheduled to release its financial data for the quarter. Suppose CNN runs a news segment the night before Ford Motor Company plans to announce its financial data and claims that Ford Motor Company has had an exceptional quarter due to their cost-cutting strategies, and as a result, Rina purchases a large amount of stock. Once trading opens the next day, Ford Motor Company's stock rises to $13.31 but then falls to $9.99 once their financial announcement is made. Sean, a chief financial officer of a public children's toy company, believes that the firm will begin to lose customers due to several product releases that he thinks are going to be unsuccessful. As a result of losing customers, Sean believes that revenues will decrease sharply over the next few years, until the company can begin producing successful products. Sean decides to short stock in the company in order to benefit from what he th