S Agrees to Sell B 10,000 Widgets at a Price

question 19

Multiple Choice

S agrees to sell B 10,000 widgets at a price of $1.00 per widget.After B breaches the contract,S resells the widgets for $0.90 per widget.However,this costs S an additional $100 in sales commissions.S saved $200 in shipping costs as the new customer was located closer to its factory.What amount can S recover from B?

• A) $900
• B) $100
• C) $1,100
• D) $1,000

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Definitions:

TRIN Ratio

Also known as the Arms Index, this technical analysis indicator compares the number of advancing and declining stocks to the volume of advancing and declining stocks, used to gauge overall market sentiment.

Bearish Signal

An indication in financial markets that the price of an asset is expected to decline.

Overweighting

Refers to the practice of allocating a larger percentage of a portfolio to a particular asset or sector than the benchmark or average portfolio.

Recent Performance

Refers to the latest outcomes or results of an investment's or financial instrument's activity over a short-term period.