Question
An investor lends 5,000 shares of XYZ stock for three months when the stock is selling for $25 per share and requires 103% cash collateral.
An investor lends 5,000 shares of XYZ stock for three months when the stock is selling for $25 per share and requires 103% cash collateral. The market interest rate on the cash collateral is 2%. The rebate rate on XYZ stock is 1.75%. What is the combined profit for the stock lender and the investment bank?
| a. | $125 | |
| b. | $107 | |
| c. | $80 | |
| d. | $63 |
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Financial Theory Perspectives From China
Authors: Xingyun Peng
1st Edition
1938134311, 1938134338, 9781938134319, 9781938134333
