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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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