Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need A. B. C. and D. answered please. if you cant read part it comment and i will respond. Please someone answer you should be

image text in transcribed Need A. B. C. and D. answered please. if you cant read part it comment and i will respond. Please someone answer you should be able to read everything. Ask for any questions.

The following questions are on short selling a. Define short interest? What is the relationship between a firms overall short position and the stock price if the stock price just broke a resistance level? If XYZ has 26,245,000 shares short, and average daily volume is 5,295,000. How many dave would it take to cover the short position b. You just sold snort TUVU shares of Highway Construction stock for S28 a share. The mician margin requirement is 60 percent and the maintenance margin is 40 percent. Construct a balance snc depicting this transaction c. After three months, the stock is selling for $32, what does your new balance sheet look like What is your current margin? What do you need to do, if anything? d. After four months, your broner informs you at this point that you must Cove your position, the price is $31, you owe a stock borrow fee of 5% annually and a $.50 dividend was paid in month 1 and 4. What are the results, dollar, and percent, annual? (15 points) The following questions are on short selling a. Define short interest? What is the relationship between a firms overall short position and the stock price if the stock price just broke a resistance level? If XYZ has 26,245,000 shares short, and average daily volume is 5,295,000. How many dave would it take to cover the short position b. You just sold snort TUVU shares of Highway Construction stock for S28 a share. The mician margin requirement is 60 percent and the maintenance margin is 40 percent. Construct a balance snc depicting this transaction c. After three months, the stock is selling for $32, what does your new balance sheet look like What is your current margin? What do you need to do, if anything? d. After four months, your broner informs you at this point that you must Cove your position, the price is $31, you owe a stock borrow fee of 5% annually and a $.50 dividend was paid in month 1 and 4. What are the results, dollar, and percent, annual? (15 points)

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

Laboratory Auditing For Quality And Regulatory Compliance

Authors: Donald C. Singer, Raluca-Ioana Stefan, Jacobus F. Van Staden

1st Edition

0367392461, 978-0367392468

More Books

Students also viewed these Accounting questions