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Imagine you have $2000 to invest. There are two companies' stocks that are available. Stock A is currently selling for $50 and will either go

Imagine you have $2000 to invest. There are two companies' stocks that are available. Stock A is currently selling for $50 and will either go up to $75 or down to $40. Stock B is currently selling for $100 and will either go up to $130 or down to $80. Consider the following strategies

f. Short sell $1000 of corporation A and put all $3000 in corporation B.

What are your possible payoffs? What are your possible returns?

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