Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 08, 2024

3. Warren Buffet had short sell of IBM stock. In 2005, IBM stocks was having high volatility. If the share price falls, Warren Buffet would

3. Warren Buffet had short sell of IBM stock. In 2005, IBM stocks was having high volatility. If the share price falls, Warren Buffet would profit from the short sale. On the other hand, if the share price would rise, lets say to $130, Warren Buffet would lose $30 per share. However, Warren Buffet when initiated the short sale, he also entered a type of order at $120. Which type of orders he entered?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

An event independently occurs on each day with probability p. Let N(n) denote the total number of events that occur on the first n days, and let Tr denote the day on which the rth event occurs. (a)...

Answered: 1 week ago

Question

★★★★★

Graphic Components (GC) has offered to supply the Federal Aviation Agency (FAA) with computer monitors at "cost plus 20 percent." GC operates a manufacturing plant that can produce 22,000 monitors...

Answered: 1 week ago

Question

★★★★★

DM Office Products (MOP) is a wholesale supplier of office products with one facility in Pennsylvania, It has decided to build a new distribution warehouse in the state of New York to help serve the...

Answered: 1 week ago

Question

★★★★★

A credit score is used by credit agencies (such as mortgage companies and banks) to assess the creditworthiness of individuals. Values range from 300 to 850, with a credit score over 700 considered...

Answered: 1 week ago

Question

★★★★★

state the current situation of Learnenow inc and describe the team's goals and the desired outcome should be?

Answered: 1 week ago

Question

★★★★★

A collector found a bone near a former Mayan territory. After careful research it has been determined that the bone lost about 8% of its Carbon-14. Approximately how old is the bone? Could it have...

Answered: 1 week ago

Question

★★★★★

Sweet Memories Inc (for Q11-13) Sweet Memories Inc is a company that produces Customized Family Portraits. Preparing a Family Portrait involves 3-steps: Collect the Images and Stories, Edit, and...

Answered: 1 week ago

Question

★★★★★

5. An outside manufacturer has offered to produce 86,000 Daks and ship them directly to Andretti's customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would...

Answered: 1 week ago

Question

★★★★★

Howard is in the 33% tax bracket, so his after-tax profit is 67% of his before-tax profit. He invests $10,000 in a certain stock, whose annual return is normally distributed with mean 5% and standard...

Answered: 1 week ago

Previous Question Next Question