Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 04, 2024

Farah Johnson sells JKL Corp. short for $38 a share. Two years later, the stock rose to $43 a share but she covered her position

Farah Johnson sells JKL Corp. short for $38 a share. Two years later, the stock rose to $43 a share but she covered her position at $30 a share. If the margin requirement is 60%, what is the percentage return earned on the investment?

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

Recommended Textbook for

The New Public Finance

Authors: Inge Kaul, Pedro Condeicao

1st Edition

0195179978, 978-0195179972

More Books

Students also viewed these Finance questions

Question

★★★★★

Why does allowing for the existence of corporate taxation cause firms to prefer the maximum amount of debt possible?

Answered: 1 week ago

Question

★★★★★

Information from the December 31, 2017, year-end, unadjusted trial balance of Woodstock Store is as follows: Debit Credit Cash $ 3,545 Merchandise inventory 31,445 Store supplies 1,760 Office...

Answered: 1 week ago

Question

★★★★★

3. Observe an organization with which you are familiar. List three decisions it makes in each of the following categories: strategic planning, management control (tactical planning), and operational...

Answered: 1 week ago

Question

★★★★★

The combined gas mileage of midsize cars varies with mean 24 miles per gallon (mpg) and a standard deviation of about 5.5 mpg. A particular rental car agency typically has 150 midsize cars in its...

Answered: 1 week ago

Question

★★★★★

Farah Johnson sells JKL Corp. short for $38 a share. Two years later, the stock rose to $43 a share but she covered her position at $30 a share. If the margin requirement is 60%, what is the...

Answered: 1 week ago

Question

★★★★★

A manufacturing company, PZ Ltd, has two divisions: Division P and Division Z. Both make a single standardised product. Division P makes components P1 which it supplies to both Division Z and...

Answered: 1 week ago

Question

★★★★★

Wonder land Ltd. operates a housing development project.There was a fire on its premises on 31 January 2019 which destroyed most of the building, although stock to the value of Sh.3,960,000 was...

Answered: 1 week ago

Question

★★★★★

21. Davis Corporation expects the following transactions in 20X3. Their first year of operations: Sales (90% collectible in 20X3). P1,500,000 Bad debt write-offs...... 60,000 Disbursements of costs...

Answered: 1 week ago

Question

★★★★★

Question 5 [9 marks] Bronson, a successful fund manager at a well-known trust fund firm, has more than 15 years of experience under his belt. He has managed as significant as $500 million worth of...

Answered: 1 week ago

Question

★★★★★

*\ Headset manufactures headphone cases. During September 2024, the company produced and sold 106,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the...

Answered: 1 week ago

Question

★★★★★

The following table gives the willingness to pay for cars for eight individuals. There is a constant marginal cost of 30 to produce a car. Assume there are no fixed costs and that each individual...

Answered: 1 week ago

Previous Question Next Question