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 350

After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 350 shares of Valero Energy. At the time of the sale, a share of common stock has a value of $38. Three months later, Valero Energy is selling for $26 a share, and Sandra instructs her broker to cover her short transaction. Total commission to buy and sell the stock were $68.

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.

Your Answer:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

7th Canadian Edition

007090653X, 978-0070906532, 978-0071339575

Students also viewed these Finance questions

Question

=+b) In which graph is a larger value of a used?

Answered: 1 week ago