Assume you sell 100 shares of larson corporation short at, Ask an Expert

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Assume you sell 100 shares of Larson Corporation short at $61. You also buy a 60 call option for $3.5 to protect against the stock price going up.

(A) If the stock ends up at $80, what will be your overall gain or loss?

(B) If the stock ends up at $40, what will be your overall gain or loss?

(D) If you have an unprotected short sale position (no call option), what is the most you could lose?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91618427

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