Question
1) You just sold short 550 shares of Wetscope, Inc., a fledgling software firm, at $83 per share. You cover your short when the price
1) You just sold short 550 shares of Wetscope, Inc., a fledgling software firm, at $83 per share. You cover your short when the price hits $73.50 per share one year later. If the company paid $.39 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 50 percent.
2)Carson Corporation stock sells for $56 per share, and youve decided to purchase as many shares as you possibly can. You have $44,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 50 percent?
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