Part 1:

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $29.00 per share. On March 1, a dividend of $2.10 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $24.50 per share. You paid 50 cents per share in commissions for each transaction.

a. What is the proceeds from the short sale (net of commission)?

b. What is the 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 $24.50 per share?

d. What is the net gain from your transaction?

Part 2:

The Arizona Stock Exchange lists a bid price of 1.24 and an ask price of 1.45 for Kicking Bird Energy Corporation.

a. At what price can you buy the stock? (Round your answer to 2 decimal places.)

b. What is the dealers bid-ask spread? (Round your answer to 2 decimal places.)