After researching best buy common stock, sally jackson is convinced the stock is overpriced. she contacts her account executive and arranges to sell short 200 shares of best buy. at the time of the sale, a share of common stock had a value of $34. three months later, best buy is selling for $25 a share, and sally instructs her broker to cover her short transaction. total commissions to buy and sell the stock were $74. what is her profit for this short transaction?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value