overpriced. In response to this, he calls his broker to take a short position on 200 shares of Habitro's stock. The sale of the stock resulted in proceeds of for Larry. Over the next three months, the price of Habitro's stock decreased, and Larry placed an order through his brokerage to phare 200 shares the his short position. If the price decreased to $50, then Larry paid for the shares. Larry stands to earn from his short position