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Suppose you short sell a stock at price $40. If you close the position at $20,...

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Finance

Suppose you short sell a stock at price $40. If you close theposition at $20, your profit is $_______. If you close the positionat $45, your loss is $_____.

Can someone explain how I would go about figuring this out?

Answer & Explanation Solved by verified expert
3.9 Ratings (652 Votes)
Short selling of a stock happens when investor thinks that the price of the stock is going to decline in near future The investor borrows the stock and sells it at high price and when the price of stock    See Answer
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Suppose you short sell a stock at price $40. If you close theposition at $20, your profit is $_______. If you close the positionat $45, your loss is $_____.Can someone explain how I would go about figuring this out?

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