Why might an investor want to sell short

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Problem

1. What are the financial intermediaries, and what economic functions do they perform?

2. How could each tool of the Federal Reserve be used to slow down expansion?

3. Evaluate each of the arrangements in favor of today's organized securities exchanges relative to OTC markets.

4. Why might an investor want to sell short?

5. You are told that the market for options is a fair game but that four out of five options expire worthless. How can these two statements be true?

Reference no: EM131915996

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