EXAMPLE $2\mathrm{.}5$

The Long and Short of It

Suppose you short $2\mathrm{.}000$ shares of Alcoa, Inc. $($AA$),$ at $$15$ per share. Six months later you cover your short. If Alcoa is selling for $$10$ per share at that time, did you make money or lose money? How much? What if you covered at $$20?$