1. 2.

You sell 500 shares of Apple today that you do not own. Your broker makes this possible by "borrowing" shares from someone to make your short sale possible. The price of the shares is $60 when you short-sell them. One year later, you settle your position. The price of the shares at that point is $66.5. Assume you are not charged any fees or interest. What is your loss or gain? As always, if your answer is negative put a - in front of the number in the answer box. A stock pays a dividend of $15 one year from now. The dividend grows at a rate of 4.4% per year every year forever. The rate of discount is 6.6% per year. What is the price of the stock today