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Question 1 Short Selling [4 points]: Assume that IBM stock is selling for $100 per share and that you short sell 200 shares of the

Question 1 Short Selling [4 points]: Assume that IBM stock is selling for $100 per share and that you short sell 200 shares of the stock.

a. What would be your dollar return if the price of IBM stock drops to $95 per share?

b. What would be your dollar return if the price of IBM stock increases to $120 per share?

c. Is there a limit to your gains? Is there a limit to your losses? Explain.?

SHOW WORK pleaseee:)

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