You sold short 100 share of GameStop when its stock was trading at $200 per share. Per margin requirement, you put $12,000 of your own money to establish the short position. Three days later, GameStops share price rose to $240 and you bought and paid back the shares you borrowed. Assume that no dividend was paid and there was no interest on the loan. What would be your total profit from this investment?

Correct answer:

Negative $4000

Negative $12000

, Not Selected

$4000

, Not Selected

$12000