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

question 41

Multiple Choice

Assume that the price of ABC common stock fell in a short period of time from $105 to $84.Which of the following investors probably made the most money?

• A)Abe took a long position in 1,000 shares of ABC.
• B)Bert took a short position in 1,000 shares of ABC.
• C)Carrie kept her money in CDs at the bank.
• D)Darren shorted 2,000 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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