You short-sell 500 shares of Tuckerton Trading Co., now selling for $28 per share. What is...

Question

Question

You short-sell 500 shares of Tuckerton Trading Co., now selling for $28 per share. What is your maximum possible gain, ignoring transactions cost?

Answer 1

Answer #1

Maximum gain = sale proceeds - cost of purchasing the share

Max gain = 500 X 28 - 500 x 0 = 14000

Answer 2

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