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Calculating long and short position profits

Given that Hometown Care, Inc.'s stock is currently selling for $50 a share, calculate the amount of money that Calvin Haskins will make (or lose) on each of the following transactions. Assume all transactions involve 100 shares of stock, and ignore brokerage commissions. Input all answers as positive values.

He short-sells the stock and then repurchases the borrowed shares at $55.

Total loss of $ ___________

He buys the stock and then sells it some time later at $55.

Total gain of $ ____________

He short-sells the stock and then repurchases the borrowed shares at $40.

Total gain of $ _____________

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92818189

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