P2.13 Suppose that Tesla stock is currently selling for $270 per share. For each of the following situations calculate the gain or loss that Olivia Crowe realizes if she makes a 100 share transaction.

A) She sells short and repurchases the borrowed shares at $295.

B) She takes a long position and sells the stock at $295 per share.

C) She sells short and repurchases the borrowed shares at $255 per share.

D) She takes a long position and sells the stock at $255 per share.

P2.14 Assume that an investor buys 250 shares of stock at $37.50 per share putting up 45% margin.

A) What is the total value of the securities position?

B) How much equity capital (Initial Margin) must the investor provide to make this margin transaction?

C) What is the debit balance of this transaction?

P2.19 An investor buys 300 shares of stock selling at $65 per share using marhin of 70%. The stock pays annual dividends of $2 per share. A margin loan can be obtained at an annual interest rate of 4%. Determine what return on invested capital the investor will realize if the price of the stock increases to $84 in six months. What is the annualized rate of return?