Elizabeth Short Sold 500 Shares of Stock at $25 a Share

question 100

Multiple Choice

Elizabeth short sold 500 shares of stock at $25 a share. One month later, she covered the short at a price of $22. What was her total dollar return on this investment?

• A)−$2,400
• B)−$1,800
• C)$1,500
• D)$1,600
• E)$1,800

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Definitions:

Spot Exchange Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Yen

The official currency of Japan, commonly used in international finance as one of the world's major currencies.

Spending Money

Funds allocated for personal, discretionary use, typically for purchases outside of essential living expenses.