Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please do all parts, Thank you! 5. Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per
Please do all parts, Thank you!
5. Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per share. A dividend of $2 per share was paid on March 1 . On April 1, you closed your short position. You paid $0.50 per share for each transaction and all-in-all you realized a net gain of $300. At what price did you close your short position? 6. Determine at what share price you will receive a margin call. You short 200 shares of a stock currently trading for $30 per share. Your initial margin requirement is 40% and the maintenance margin is 25%. 7. You sold short 200 shares of common stock at $60 per share. The initial margin is 65%. What would your rate of return be if you repurchase the stock at $80 per share. Ignore interest on the margin 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