question archive Suppose you short-sell 100 shares of IBM, now selling at $200 per share

Suppose you short-sell 100 shares of IBM, now selling at $200 per share

Subject:FinancePrice: Bought3

Suppose you short-sell 100 shares of IBM, now selling at $200 per share.

a What is your maximum possible loss?

b. What happens to the maximum loss if you simultaneously place a stop-buy order at $210?

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