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could someone give in an in depth explanation as to why the loss for this problem is unlimited: Stock XYZ has a current price of
could someone give in an in depth explanation as to why the loss for this problem is unlimited:
Stock XYZ has a current price of $5 per share. Last month XYZ traded for a low of $4, and two months ago the same stock traded for a high of $6. Suppose you sell one share of XYZ short today at $5. Which of the following represents the most you could possibly lose in your short transaction (the worst case scenario)?
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