Assume That You Open a 100-Share Short Position in Jiffy,Inc

question 5

Multiple Choice

Assume that you open a 100-share short position in Jiffy,Inc.common stock at the bid-ask price of $32.00 - $32.50.When you close your position,the bid-ask prices are $32.50 - $33.00.If you pay a commission rate of 0.5%,what is your profit or loss on the short investment?

• A) $32.50 gain
• B) $16.25 loss
• C) $132.50 loss
• D) $100.00 gain

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Definitions:

Self-Protective Mechanisms

Psychological strategies employed by individuals to defend themselves against threats to their self-esteem or well-being.

Basic Anxiety

A term introduced by psychoanalyst Karen Horney, referring to feelings of helplessness and insecurity that arise from living in a potentially hostile world, which can significantly affect one's relationships and self-image.

Drive for Perfection

A motivating force that compels individuals to strive for flawlessness and set excessively high performance standards.

Personality Type

Distinct patterns of thought, feeling, and behavior that characterize an individual’s adjustments to the world; often categorized into specific types or categories.