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Question
Linda, a currency trader for United Traders, has specific instructions not to take a position on any currency in excess of $1 million. Linda sees what she believes to be a sure thing and takes a $20 million position. Unfortunately, the transaction goes bad and costs United $60 million. Does Linda have any liability to United?
A. Yes, she violated specific instructions and is liable for the loss.
B. No, this is normal market practice.
C. Yes, she engaged in insider trading.
D. No, she is protected by the business judgment rule.
Answer
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Related questions
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