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Given its recent price increase, Jahim has turned bearish on Costco and sets up a short position. He deposits $1000 in cash and shorts 10
Given its recent price increase, Jahim has turned bearish on Costco and sets up a short position. He deposits $1000 in cash and shorts 10 shares at the current stock price of $500. Jahim thinks the stock will be dropping while he is away on vacation, but he wants to ensure he does not lose more than 10% of his $1000 deposit. Which answer most closely reflects the price and type of order he should place? Select one: a. Stop-loss at $490 b. Stop-buy at $510 c. Market-buy at $510 d. Limit-buy at $510 e. Limit-sell at $490
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