Question
A B C D Stock Edita Telecom Egypt CIB Remco Price on April 7 th 8 EGP 14.8 EGP 70.25 EGP 3.09 EGP Anticipated price
|
| A | B | C | D |
| Stock | Edita | Telecom Egypt | CIB | Remco |
| Price on April 7th | 8 EGP | 14.8 EGP | 70.25 EGP | 3.09 EGP |
| Anticipated price on July 7th | 11.35 EGP | 11.25 EGP | 55.75 EGP | 4.13 EGP |
| Dividends during period | 2 EGP per share | zero | 3 EGP per share | zero |
| Number of shares invested | 100 | 80 | 50 | 100 |
- An investor is considering to take a short position in the CIB stock. After analyzing the market to take a decision the investor found the average daily trading on CIB to be 2,640 while the long trade positions are 1,082. Should the investor go ahead with this short sale or not? Support your answer quantitatively and with an explanation (3 marks).
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
