2. The bid-ask spread on XYZ stock is always 30 cents. Laura decides to short-sell 100 shares of XYZ on January 1st of 2007 when the ask price is $30. Laura's broker charges $20 per trade. XYZ pays dividends of $0.15 per share at the end of every quarter. Ignore any interest on dividends. Laura must deposit 40% of the net proceeds received from the sale of stock as collateral. The market rate of interest is 6% per year, but the short rebate is only 5%. Laura will close her position on December 31st after the dividend is paid. What range of ask prices on December 31st will result in a profit for Laura? Assume unearned interest on haircut at market rate is a loss. Also assume that the proceeds of the short sale are placed in a non-interest bearing account and that all rates are effective rates. A. (0,28.58) B. (0,28.98) C. (0,29.03) D. (0,29.18) E. (0,29.78)