Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1 , you sold short one round lot ( that is , 1 0 0 shares ) of Lowe's stock at $ 1
On January you sold short one round lot that is shares of Lowe's stock at $ per share. On March a dividend of $ per share was paid. On April you covered the short sale by buying the stock at a price of $ per share. You paid cents per share in commissions for each transaction. a What is the proceeds from the short sale net of commission Proceeds from the short sale $ b What is the dividend payment? Dividend payment $ c What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $ per share? Total cost including commission $ d What is the value of your account on April Value of account $
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