Answer :
The Share Price Would be $67 Each.
According To the Query,
We are Given
- $12,000 would be the cost of selling 200 shares short at $60 a share.
In order to meet my commitment, I will need to purchase 200 shares from the market.
I would now experience a loss if the share price rose above $60.
I will be prepared to spend no more than $13400 ($12000 plus $1400) to purchase 200 shares in order to keep this loss to $1400.
Thus, $13400 / 200 = $67 would be the most I would be willing to pay for one share.
The response is as follows:
Put down a stop loss order to purchase 200 shares at $67 each.
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Correct Question - You sell 200 shares of a stock short for $60 per share. You want to limit your loss on this transaction to no more than $1, 400. What order should you place? You shroud place a stop-loss order to buy 200 shares at $ .