calculate the gain or loss that Olivia Crowe realizes if she makes a 100-share transaction.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose that Tesla stock is currently selling at $270 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Olivia Crowe realizes if she makes a 100-share transaction.

  1. She sells short and repurchases the borrowed shares at $295 per share.
  2. She takes a long position and sells the stock at $295 per share.
  3. She sells short and repurchases the borrowed shares at $255 per share.
  4. She takes a long position and sells the stock at $255 per share.
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