# Finance

Suppose that you sell short 100 shares, now selling at \$70 per share.

What is your maximum possible loss?

What happens to the maximum loss if you simultaneously place a stop buy order at \$78?

1. π 0
2. π 0
3. π 69
asked by Blake
1. The Max possible loss will be increasingly unbounded if P --> infinite.

If you simultaneously place a stop-buy order at \$78, the maximum possible loss per share is \$8.

1. π 0
2. π 0
posted by RIO

## Similar Questions

1. ### Finance

You decide to sell short 100 shares of Charlotte Farms when it is selling at its yearly high of \$56. Your broker tells you that your margin requirement is 45% and that the commission on the purchase is \$155. While you are short

asked by Mwende on March 8, 2013
2. ### Economics

You buy 100 shares of stock at \$4.00 per share. You receive one dividend of 10 cents per share. You sell the stock 1 year later for \$5.50 per share. The fee for selling the stock is \$15.00. What is the total profit you made on the

asked by Angie on April 11, 2016
3. ### Finance

A U.S. firm wants to raise \$15 million by selling 1 million shares at a net price of \$15. We know that some say that firms "leave money on the table" because of the phenomonon of underpricing. Using the average amount of

asked by Anonymous on February 5, 2013
4. ### finance

11-10. A U.S. firm wants to raise \$15 million by selling 1 million shares at a net price of \$15. We know that some say that firms βleave money on the tableβ because of the phenomenon of underpricing. a. Using the average

asked by MK on May 5, 2013
5. ### maths

by selling at 77% some 9/4%shares of face value 100 and investing the proceeds in 6% shares of face value 100, selling at 110 a person got profit of 117. how many shares did he sell?

asked by aarathy on February 27, 2016
6. ### math

suppose walmart stock is selling at \$59 a share and mattel stock is selling at \$28 a share. Amy waller has a maximum of \$6000 to invest. she wishes to purchase four times as many shares of walmart as of mattel. only whole shares

asked by dina on October 12, 2011
7. ### math

suppose walmart stok is selling at 59 dollars a share and mattel stock is selling at 28 a share. amy waller has a maximum of 6000 dollars to invest. she wishes to purchase four times as many shares of walmart as of mattel. only

asked by dina on October 14, 2011
8. ### Personal Income Tax

Here is my homework problem that I need some help with: "A taxpayer is considering selling 100 shares of stock. The current market price is \$7,500. Which shares should the taxpayer instruct the broker to sell, and what are the tax

asked by Brook on March 17, 2011
9. ### Economics and Statistics

A stockbroker placed the following order for a customer: β’ 50 shares of Kaiser Aluminum preferred at \$100 a share β’ 100 shares of GTE preferred at \$27.20 a share β’ 20 shares of Boston Edison preferred at \$12.20 a share What

asked by Anonymous on March 27, 2014
10. ### Statistics

A stockbroker placed the following order for a customer: β’ 50 shares of Kaiser Aluminum preferred at \$100 a share β’ 100 shares of GTE preferred at \$27.20 a share β’ 20 shares of Boston Edison preferred at \$12.20 a share What

asked by Shawn on March 27, 2014

More Similar Questions