Multiple Choice
Aria has heard a rumor that a major food company will be forced to recall millions of jars of peanut butter.due to contamination If the rumors are true, the company's stock price will decline sharply.Which one of the following strategies would allow Jennifer to earn a profit if the rumor proves to be true?
A) Take a long position in the stock today.
B) Sell the stock short today.
C) Buy the stock on margin today.
D) Take a long position in the stock one month from today.
Correct Answer:
Verified
Correct Answer:
Verified
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