Maximum possible loss, Question 1: If the price actually goes up, what is your maximum, Accounting Basics

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Maximum possible loss

Problem:

A company's stock is currently trading at $150. You believe the price is going to drop so you decide to short 100 shares.

Required:

Question 1: If the price actually goes up, what is your maximum possible loss?

Question 2: To limit your risk, if you place a Stop-buy order for 100 shares at $158, what is your maximum possible loss?

Note: Show all workings.

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Accounting Basics: Maximum possible loss

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Accounting Basics: Maximum possible loss

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Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Maximum possible loss

Reference No:- TGS0884429

Recent Questions Asked Accounting Basics

Q : One year holding period

Q : Total amount that you made

Q : Describe the difference between alleles and genes

Q : Price of the stock go before you get a a margin call

Q : Maximum possible loss

Q : Current bid for a stock

Q : New margin percentage

Q : What is the nav

Q : Difference between a dominant gene and a recessive gene

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