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    Amount changes on stock transactions

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    Given that Humphrey Dog Toys Inc.'s stock is currently selling for $50 a share, calculate the amount that Elmer D. will make, or lose, on each of the following transactions (assume that all transactions involve 100 shares of stock, and ignore brokerage commissions.)
    a. If Elmer sold the stock short at $50 per share and repurchased at $60 per share?
    b. If Elmer bought the stock at $50 per share and later sold it at $60 per share
    c. If Elmer sold the stock short at $50 per share and later repurchased it at $35 per share?

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    Solution Preview

    Given that Humphrey Dog Toys Inc.'s stock is currently selling for $50 a share, calculate the amount that Elmer D. will make, or lose, on each of the following transactions (assume that all transactions involve 100 shares of stock, and ignore brokerage commissions.) (TCO E)
    a. If ...

    Solution Summary

    This solution calculates how much a firm will make or lose on three given transactions.

    $2.19

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