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A stock costs $130 per share now. Assume that it will cost $150 dirhams per share in three months. The dividend payout is $10 per
A stock costs $130 per share now. Assume that it will cost $150 dirhams per share in three months. The dividend payout is $10 per share. (a) Calculate the profit for an investor that short sells 1000 stocks during
the period. (b) Calculate the profit for an investor that has a long position in this case. (c) What is the relationship between these two values that you have calculated in parts (a) and (b)?
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