Kensington Company Stock Was Selling at $132 a Share When

question 32

Multiple Choice

Kensington Company stock was selling at $132 a share when Charlotte sold 300 shares of the stock short. Today Charlotte bought 300 shares of the same stock at a price of $140 per share to cover her position. Ignoring trading costs, what is the dollar return on Charlotte's investment?

• A) $2,400
• B) -$800
• C) $800
• D) $-2,400

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Definitions:

Sinkhole

A depression or hole in the ground caused by the collapse of a surface layer, often due to the dissolution of underlying limestone, volcanic activity, or water withdrawal from wells.

Stalactite

A type of speleothem that hangs from the ceiling of limestone caves, formed by the deposition of minerals from dripping water.

Limestone Caves

Natural cavities formed within limestone rock due to the dissolution of carbonate minerals by water, known for their unique formations and speleothems.

Quartz Crystals

Hard, crystalline minerals made of silica (SiO2), used in various applications due to their piezoelectric properties.