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Natasha shorts a share of stock ACDC at $40 per share. One month later she closes out her short position (that is she buys back
Natasha shorts a share of stock ACDC at $40 per share. One month later she closes out her short position (that is she buys back the stock) when ACDC is selling for $34 per share. For your information, and you may not find this important, over the previous year, shares of ACDC have traded over the band $29 to $60. What is Natasha's profit or loss on the short sale? A. $34 B. $31 C. $20 D. $6 E. $11 Suppose you WRITE (also called SELL) a call option on Stock Z with a strike price of $10 for a premium of $2. The call option expires in 3 weeks. Stock Z's stock price per share is $11. What is the potential maximum loss on the written call option? A. $2 B. $11 O C. $10 D. $9 E. An unlimited amount
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