Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 270

After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 270 shares of Valero Energy. At the time of the sale, a share of common stock has a value of $36. Three months later, Valero Energy is selling for $28 a share, and Sandra instructs her broker to cover her short transaction. Total commission to buy and sell the stock were $67.

What is her profit for this short transaction?

Round your answer to the nearest whole dollar. Do not include the comma, period, and "$" sign in your response.

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_2

Step: 3

blur-text-image_3

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

Banker To The World

Authors: William Rhodes

1st Edition

0071704256, 978-0071704250

More Books

Students also viewed these Finance questions

Question

How We Listen?

Answered: 1 week ago