A speculator on the stock exchange sells 1,000 shares he does not own at ₦25 per share, expecting the price to fall. He later buys them back at ₦20 per share to fulfil his obligation. Ignoring transaction costs, what is his profit or loss?

This describes a 'bear' transaction (short selling). The speculator sold at ₦25 per share and bought back at ₦20 per share, making a gain of ₦5 per share. Profit = 1,000 × ₦5 = ₦5,000. Option B would apply if prices had risen instead of fallen. Options C and D reflect errors in using total proceeds rather than the price difference.