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Corporate Finance · Quiz 2 · 23 Nov 2025 · September 2025 term

Question 16: An investor decides to short sell 100 shares of Tech Inc…

Question 16

+4 marksOne correct option

An investor decides to short sell 100 shares of Tech Inc. The current share price is Rs. 300. At the end of 1 year, the share price drops to Rs. 275. How much profit does the investor make from exercising the short sale on these shares (Assuming there are no additional costs for this trade)

  1. A

    Rs. 2500

  2. B

    Rs. 2750

  3. C

    Rs. 3000

  4. D

    The investor incurs a loss.

Show answer

Correct answer

  • A

    Rs. 2500

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Question 16 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 23 Nov 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 23 Nov 2025 NEW). It carries 4 marks.

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