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Amount changes on stock transactions

by | Dec 2, 2023 | Posted Questions

Amount changes on stock transactions

Given that Humphrey Dog Toys Inc.’s stock is currently
selling for $50 a share, calculate the amount that Elmer D. will make, or lose,
on each of the following transactions (assume that all transactions involve 100
shares of stock, and ignore brokerage commissions.)

a. If Elmer sold the stock short at $50 per share and
repurchased at $60 per share?

b. If Elmer bought the stock at $50 per share and later sold
it at $60 per share

c. If Elmer sold the stock short at $50 per share and later
repurchased it at $35 per share?
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