Question
This practice can backfire when a rush to cover borrowed stock causes prices to shoot up in a namesake kind of “squeeze.” For 10 points each:
[10m] Name this practice of borrowing stock with the expectation that it will decrease in price. Michael Burry made a windfall doing this action to securities backed by subprime mortgages in 2007.
ANSWER: shorting [or short-selling]
[10e] Users of the WallStreetBets subreddit conspired to cause a short squeeze for this declining video game retailer in 2021.
ANSWER: GameStop [or GameStop Corp.; prompt on GME; reject “GameSpot”]
[10h] Market suppliers, not traders, can induce a gamma squeeze, where gamma measures this property for an option. This property can be measured by the standard deviation of the returns on an asset.
ANSWER: volatility [accept any answer including volatility, such as market volatility or asset volatility or stock volatility or implied volatility or annual volatility; prompt on sigma]
<Jeffrey Liu, Social Science - Economics> ~23313~ <Editor: Vincent Du>
Data
| Team | Opponent | Part 1 | Part 2 | Part 3 | Total |
|---|---|---|---|---|---|
| Belmont | Kinkaid | 10 | 10 | 0 | 20 |
| Hunter A | Johns Creek A | 10 | 10 | 0 | 20 |
| Innovation Academy A | Heights | 10 | 10 | 0 | 20 |
| Winston Churchill A | Hoover A | 10 | 10 | 0 | 20 |
Summary
| Tournament | Edition | Exact Match? | Heard | PPB | Easy % | Medium % | Hard % |
|---|---|---|---|---|---|---|---|
| 2024 PACE NSC | 06/08/2024 | Y | 4 | 20.00 | 100% | 100% | 0% |