Assume that ibm stock is selling for 100 per share and that, Financial Management

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Assume that ibm stock is selling for 100 per share and that

Assume that IBM stock is selling for $100 per share and that you short sell 200 shares of the stock.

a. What would be your dollar return if the price of IBM stock drops to $95 per share?

b. What would be your dollar return if the price of IBM stock increases to $120 per share?

c. Is there a limit to your gains? Is there a limit to your losses? Explain.?

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Financial Management: Assume that ibm stock is selling for 100 per share and that

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Financial Management: Assume that ibm stock is selling for 100 per share and that

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