12 Mr. A is holding 1,000 shares of face value of 100 each of M/s. ABC Ltd. He wants to hold these shares for long term and have no intention to sell. On 1st January 2021, M/s XYZ Ltd. Has made short sales of M/s. ABC Ltd.'s shares and approached Mr. A to lend his shares under Stock Lending Scheme with following terms: (ii) Shares to be borrowed for 3 months from 01-01-2021 to 31-03-2021, Lending Charges/Fees of 1% to be paid every month on the closing price of the stock quoted in Stock Exchange and (iii) Bank Guarantee will be provided as collateral for the value as on 01-01-2021. Other Information: (a) Cost of Bank Guarantee is 8% per annum, (b) On 29-02-2021 M/s. ABC Ltd., declared dividend of 25%. (c) Closing Price of M/s. ABC Ltd.'s share quoted in Stock Exchange on various dates are as follows: Date 01-01-2021 31-01-2021 29-02-2021 31-03-2021 Share Price in Scenario-1 Bullish 1.000 1,020 1,040 1.050 You are required to find out: 01) Share Price in Scenario-2 Bullish 1,000 980 960 940 Earning of Mr. A through Stock Lending Scheme in both the scenarios, (ii) Total Earnings of Mr. A during 01-01-2021 to 31-03-2021 in both the scenarios. (iii) What is the Profit or loss to M/s. XYZ by shorting the shares using through Stock Lending Scheme in both the scenarios