Question

Dana believes that a new phone to be sold by ear fruit inc. will become the most popular phone in the global market. dana enters into a contract to buy 500 shares of ear fruit stock, anticipating an increase in its value. the phone does not become popular, and the price of the stock does not rise. dana can recover

a. ​the amount of the purchase price plus the unexpected decrease.
b. ​the amount of the purchase price plus the expected increase.
c. ​nothing.

Answer 1

Dana believed that the new phone sold by ear fruit inc. will become the most popular phone in the global market thus she bought 500 shares of ear fruit stock. The phone did not become popular, and the price of the stock did not rise so its price is expected to decrease with time. Therefore, Dana can recover only a. ​The amount of the purchase price plus the unexpected decrease.