Suppose that you expect sugarcane stock price to decline, Financial Management

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Suppose that you expect sugarcane stock price to decline

Suppose that you expect SugarCane stock price to decline. So you decide to ask your broker to short sell 2000 shares. The current market price is $40. The proceeds from the short sale $80,000 is credited into your account. However, a few days later the market price of the stock jumps to $80 per share and your broker asks you close out your position immediately. What is your profit or loss from this transaction?

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Financial Management: Suppose that you expect sugarcane stock price to decline

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Financial Management: Suppose that you expect sugarcane stock price to decline

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