A stock is currently selling for $60.00 a share. What is the gain or loss on...

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A stock is currently selling for $60.00 a share. What is the gain or loss on...

A stock is currently selling for $60.00 a share. What is the gain or loss on the following transactions? Use a minus sign to enter the amount as a negative value. Round your answers to the nearest cent.

You take a long position and the stock’s price declines to $58.35. $

You sell the stock short and the price declines to $58.35. $

You take a long position and the price rises to $68.65. $

You sell the stock short and the price rises to $68.65. $

business finance

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Answer 1

Answer #1

Long position means buying the stock currently and to be sold in future.

Short sell means selling the stock currently and to be bought in future.

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A B C D E NM + D Position Long (Buy) Short sell Long (Buy) Short Sell Current Price $60.00 $60.00 $60.00 $60.00 Future Price

Cell reference -

в с D E Current Price Gain/Loss Position Long (Buy) Short sell Long (Buy) Short Sell 60 60 60 60 Future Price 58.35 58.35 68.

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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Answer 2

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