FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20. You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short

image text in transcribed

20. You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27? (Ignore any dividends.) A. 10% B. : 20% C. 6.67% D. 15%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financing High Tech Startups Using Productive Signaling To Efficiently Overcome The Liability Of Complexity

Financing High Tech Startups Using Productive Signaling To Efficiently Overcome The Liability Of Complexity

Authors: Robin P. G. Tech

1st Edition

331966154X,3319661558

More Books

Students also viewed these Finance questions

Question

★★★★★
You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q = 100,000 1.25P, what price should you charge in order to maximize...

Answered: 1 week ago

Question

★★★★★
Given the following yield curve, what is the two-year forward rate 3 years from now? Use decimal format in your answer. For example, 5% should be written as 0.05. Keep 4 decimal places for your...

Answered: 1 week ago

Question

★★★★★
Name one self-regulated profession. Does it regulate disclosure, conduct, or structure?

Answered: 1 week ago

Question

★★★★★
Metal Products, LLC, manufactures metal beverage containers. The division that manufactures soft-drink beverage cans for the North American market has two plants that operate 24 hours a day, 365 days...

Answered: 1 week ago

Question

★★★★★
please help Table 10-1. Capital Budgeting Choices Capital Cumulative Business Investment Investment Location Cost in $ Costs 1 25,000 25,000 2 28,500 53,500 3 32,500 86,000 4 32,500 118,500 5 45,000...

Answered: 1 week ago

Question

★★★★★
1. The power P obtained from a windmill is directly proportional to the cube of the wind speed s. a) Write an equation that expresses this variation. b) Find the constant of proportionality for a...

Answered: 1 week ago

Question

★★★★★
Hometown Insurance sells 10-year annuities to retirees who are looking for stable sources of investment income. Hometown invests the annuity funds it receives in an equity index fund with annual...

Answered: 1 week ago

Question

★★★★★
The triplets are now three and a half years old, and Jamie Lee and Ross, both 38, are finally beginning to settle down in to a regular routine now that their children are a little more...

Answered: 1 week ago

Question

★★★★★
Q1. The following is the entire position of Ms. JD on OCT 1, 2020: Futures price when opened position on Jul 2020 Futures price on OCT 1, 2020 LONG 10 JUL 2021 WTI(CRUDE OIL)*, NYMES FUTURES....

Answered: 1 week ago

Question

★★★★★
You work as a supervisor in a manufacturing firm. The company has implemented a balanced scorecard performance appraisal system and a financial bonus for exceeding goals. A major customer order for...

Answered: 1 week ago

Question

★★★★★
An accountant made the following adjustments at December 31, the end of the accounting period: (Click the icon to view the adjustments.) Read the requirements. Requirement 1. Journalize the adjusting...

Answered: 1 week ago

Previous Question Next Question