Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Andrew sells a stock short for 800. At the end of one year, Andrew purchases the stock for 760. During the year, Andrews stock paid
Andrew sells a stock short for 800. At the end of one year, Andrew purchases the stock for 760. During the year, Andrews stock paid a dividend of 50. Amanda sold a dierent stock short 1000. At the end of the year, Amanda purchases the stock she sold short for X. Amandas stock paid a dividend of 25 during the year. The margin requirement for both Andrew and Amanda is 60% and they both earn 10% interest on the margin account. Andrew and Amanda both received the same return. Calculate X.
Answer: 987.5
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started