Several illustrations have been provided explaining a long position and how it contrasts with a short position. College tuition has even been used as an example! Prepare at least one example of a long position and one example of a short position and back it up with explanations. How are these examples similar to or different than taking a long or short position on stocks? How do price expectations influence people’s behavior? Evaluate the risk of your imagined short and long positions, using common sense ideas of risk.
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