Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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 different 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. No financial calculator or excel.

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

Students also viewed these Finance questions