Question
Suppose you decided to open a short position on Meta (Ticker: META), the parent company of Facebook. Your broker tells you that the current market
Suppose you decided to open a short position on Meta (Ticker: META), the parent company of Facebook. Your broker tells you that the current market price of Meta is $114.12 per share, the bid price for Meta shares is $114.00, and the ask price is $114.10. You believe that Meta's share will fall over the current year. At that time, your broker tells you that their analysts think that market price for Meta will be $88.52, the bid price for Meta's stock will be $88.09 and the ask price will be $88.43. Assuming that you decide to short sell 150 shares and you do not have pay any interest rate on the borrowed shares, what will your profit (or loss) from the short sale be? Record your answer as a dollar amount rounded to the nearest penny.
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