In binary arithmetic, When you subtract 2 signed numbers you must discard the carry out. My question is, is it possible for overflow to occur and a carry out? So, on paper there would be two extra bits and you would have to discard one?
Also, if your subtracting 2 signed numbers, how do you differentiate between overflow and a carry out?
When you subtract two signed numbers, the Carry flag is irrelevant; the Overflow flag is all that counts. The Carry flag is for unsigned integer operations. So there is only ever one bit to worry about.