Loss on the short sale


An investor sold a stock short a year ago for $50 per share. The stock's price is currently $52 per share. If the investor is unwilling to accept a loss on the short sale of more than $5 per share on the transaction, she could place a

Answer

A. stop-loss order with a specified selling price of $55 per share.

B. stop-buy order with a specified purchase price of $55 per share.

C. stop-loss order with a specified selling price of $45 per share.

D. stop-buy order with a specified purchase price of $45 per share.

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Finance Basics: Loss on the short sale
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