What type of account would judy need to have

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Judy sells short 1,000 shares of XYZ at $10 and immediately buys 10 calls with a strike price of $11.50 at a cost of $0.25.

Problem 1: What type of account would Judy need to have in order to execute a trade?

Problem 2: What does Judy believe the shares of XYZ are going to do?

Problem 3: Why does she buy the calls?

Problem 4: Discuss 2 risks of shorting shares.

Problem 5: What is her total profit/loss if XYZ shares hit $12

Problem 6: What is her total profit/loss if XYZ share hit $8

Reference no: EM132753481

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