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3 years ago

You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. What is your maximum possible loss

Business

1 answer:

pentagon [3]3 years ago

5 0

Answer:

Unlimited

Explanation:

GIven that:

You short-sell 200 shares of Tuckerton Trading Co

now selling for $50 per share.

If a short-sell occurs on a trade, the lower the share price, the higher the profit your are liable to achieve but if short-sell occurs and the share price is higher, then the more loss you're going to accumulate.

From the question, the lowest possible share price is zero and the highest possible share price is infinity since there is no stop loss.

∴

The maximum possible loss = 200 × 50( 1 - infinity share price)

= Unlimited loss

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valentinak56 [21]

Answer:

$ 22,000 unfavourable

Explanation:

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Fixed overhead expenditure variance =

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2 years ago

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Answer:

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3 years ago

In a department, 28,000 units are completed and transferred out and 14,400 remain in ending WIP at 85% complete. If an equivalen

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Answer:

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Explanation:

The condition for the units for transferred is that they must have been completed 100% with respect to equivalent unit cost,hence the materials transferred out should be valued at full $8.00 per direct material.

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3 years ago

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