Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help on these 4 multiple choice questions please! Use the following information to answer Questions 32-35 below. You sold short 1.000 shares of Loser

image text in transcribed
Need help on these 4 multiple choice questions please!
Use the following information to answer Questions 32-35 below. You sold short 1.000 shares of Loser Ca p rice of 565 per share. Many man your view of the company, Shares of Loser Co are the largest short positio 30% per share. Many market participants agree with are the largest short position on the S&P/TSX Index. 32. Your maximum possible loss on your trade is: A. Zero BS6.500 C. $65.000 D. $130,000 E. Unlimited 33. With respect to your position in Loser ce which of the following orders is most useful if you wish immediate execution of the trade? A. Fill or kill order B. Limit order C. Stop-loss order D. Stop-buy order E. Day order 34. Loser Co. surprises the market by developing a product that is a massive hit, with strong global demand. The price of the stock rises sharply. Which of the following factors most likely contributed to the increased stock price? Market participants now expect the company to have higher revenues Massive selling due to a "short squeeze" Short-sellers are increasing their positions in the stock III. A. I only B. II only C. I and II only D. I and III only E. I, II, and III 35. The initial margin on your short sale of Loser Co. is 50%. At what stock price would you receive a margin call if the maintenance margin is 30%? A. $69.64 B. $75.00 C. $78.46 D. $86.54 E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Managers

Authors: Harvard Business School Press

1st Edition

1578518768, 978-1578518760

More Books

Students also viewed these Finance questions

Question

Compare levels of resolution in conflict outcomes?

Answered: 1 week ago

Question

Strategies for Managing Conflict Conflict Outcomes?

Answered: 1 week ago