Imagine you borrow 100 stocks from a broker, and you sell the stocks on the...
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Accounting
Imagine you borrow 100 stocks from a broker, and you sell the stocks on the market for $100 each. You expect the price of the stock to drop to $80. Instead, the stock price goes up to $102. How much did you gain/lose?
A) You gained $2 x 100 = $200.
B) You lost $2 x 100 = $200.
C) You lost ($102 - $80) x 100 = $2,200. D) You gained ($102 - $80) x 100 = $2,200.
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