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I need a Step-by-Step solutions to all the sub-questions. Thanks! Question 8: John Q. Investor takes a short position on 10,000 shares of Ford (F),
I need a Step-by-Step solutions to all the sub-questions. Thanks!
Question 8: John Q. Investor takes a short position on 10,000 shares of Ford (F), selling at $57.59 per share on April 20. Dividends are estimated at $16 per year paid quarterly, and the last Ex-date was March 31.JQ's broker charges him $500 for the loan of the shares every six months JQ covers his position on October 17 at $71.20 At the time of the initial sell JQ's broker must deposit to JQ's margin account a total of S Type: Calculated Points Awarded: 2/5 Your Answer(s): $863850.00 and JQ's initial investment is $ 287950.00 JQ's profit on this position is $ 55600.00 the holding period rate of return is 19.310% The rate of return on the underlying asset is 9.650 %Step by Step Solution
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