What is maximum possible gain-maximum possible loss

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Ms. Felsen decides to short-sell 25,000 shares of Dry Ships Inc. (DRYS) at $3.52 per share. (a) What is Ms Felsen’s maximum possible gain? (b) What is Ms. Felsen’s maximum possible loss? (c) Suppose that Ms. Felsen simultaneously places a stop-buy order for 25,000 shares of DRYS with a $4.25 limit. Assuming that the entire order will be filled at the $4.25 limit if executed, what is Ms. Felsen’s maximum possible loss.

Reference no: EM131950403

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