Answered step by step
Verified Expert Solution
Question
1 Approved Answer
25 On January 1, you sold short one round lot (that is, 100 shares) of Facebook stock at $20.00 per share. On March 1, a
25 On January 1, you sold short one round lot (that is, 100 shares) of Facebook stock at $20.00 per share. On March 1, a dividend of $1.60 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $15.20 per share. You paid 50 cents per share in commissions for each transaction. a. What is the proceeds from the short sale (net of commission)? X 01:42:04 Proceeds from the short sale b. What is the dividend payment? Dividend payment c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $15.20 per share? Total cost including commission d. What is the net gain from your transaction? Net gain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started