Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dianna shorted 2000 shares of Chapstick Inc. on January 1, 2019 at a price of $15.00 On March 31 of the same year, she closed

image text in transcribed
Dianna shorted 2000 shares of Chapstick Inc. on January 1, 2019 at a price of $15.00 On March 31 of the same year, she closed out her position with the brokerage firm when the stock was trading $12.00 Her brokerage short selling margin credit ratios are summarized below Price per share of security Credit required 125% $10.00 or above 150% $5.00 to $9.99 175% $1.50 to $4.99 200% $0.25 to $1.49 Not eligible for short sale Less than $0 25 Disregarding any potential commissions, what was Dianna's return on this investment? ("not annualized, not effective return just her straight return) - if necessary, round your answer to 2 decimal places % Page 27 of 31 Next Page

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

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

Fundamentals of Investments Valuation and Management

Authors: Bradford D. Jordan, Thomas W. Miller

5th edition

978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292

More Books

Students also viewed these Finance questions

Question

LO14.2 Discuss how game theory relates to oligopoly.

Answered: 1 week ago