Solved: Dollar return for the price of ibm stock, Finance Basics

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Dollar return for the price of ibm stock

Question: Assume that IBM stock is selling for $110 per share and that you short sell 200 shares of the stock.

Q1. What would be your dollar return if the price of IBM stock drops to $95 per share?

Q2. What would be your dollar return if the price of IBM stock increases to $120 per share?

Q3. Is there a limit to your gains? Is there a limit to your losses? Explain.

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Finance Basics: Dollar return for the price of ibm stock

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Finance Basics: Dollar return for the price of ibm stock

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