Elizabeth Short Sold 600 Shares of Stock at $62 a Share

question 97

Multiple Choice

Elizabeth short sold 600 shares of stock at $62 a share. One month later, she covered the short at a price of $58. What was her total dollar return on this investment?

• A) -$2,400
• B) -$1,800
• C) -$920
• D) $1,800
• E) $2,400

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Definitions:

Shut Down Point

The point at which a company's revenue is exactly equal to its variable costs and it ceases operations to minimize losses.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services in exchange for money.

Price

The sum of money anticipated, needed, or provided as compensation for something.

Price of Rice

The cost at which rice is sold, influenced by factors such as supply, demand, quality, and market conditions.