Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 pts Suppose that after you heard of the financial news about the coronavirus 1 years ago. you sold short 1.000 shares of AMC Entertainment

image text in transcribed
5 pts Suppose that after you heard of the financial news about the coronavirus 1 years ago. you sold short 1.000 shares of AMC Entertainment at $4.5 per share. The initial margin was 50%. After 6 months, you repurchased the same number of stock at $4 per share. The stock paid no dividend and you did not remove any money from the account. What would be your annualized rate of return from this transaction? 0 44.4% 0 25.3% O 22.2% 0 -22.2% O None of the above

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

Step: 3

blur-text-image

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

Public Finance

Authors: Harvey S. Rosen

5th Edition

025617329X, 978-0256173291

More Books

Students also viewed these Finance questions

Question

How do you think they did planning for the bad weather?

Answered: 1 week ago