Assume That the Price of ABC Common Stock Fell from in a Short

question 117

Multiple Choice

Assume that the price of ABC common stock fell from in a short period of time from $105 to $84.Which of the following investors probably made the most money,if all of these transactions occurred prior to the drop in price?

• A) Abe took a long position in 1000 shares of ABC
• B) Bert took a short position in 1000 shares of ABC
• C) Carrie kept her money in CDs at the bank
• D) Darren shorted 2000 shares of ABC using a margin loan
• E) Earl used a margin loan to finance a 2000 share long position in ABC

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