Question
Please help me solve the ones that are incorrect. You believe the price of Freeze Frame Company stock is going to fall, so you short
Please help me solve the ones that are incorrect.
You believe the price of Freeze Frame Company stock is going to fall, so you short 650 shares at a price of $61. The initial margin is 55 percent. Ignore dividends.
a. Construct the equity balance sheet for the original trade.
Note: Input all amounts as positive values.
b-1. Construct equity balance sheets for a stock price of $56 per share.
Note: Input all amounts as positive values.
b-2. What is your margin?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
b-3. What is your effective annual return if you cover your short position at this price in three months?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
c-1. Construct equity balance sheets for a stock price of $66 per share.
Note: Input all amounts as positive values.
c-2. What is your margin?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
c-3. What is your effective annual return if you cover your short position at this price in three months?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
b-1. Construct equity balance sheets for a stock price of $56 per share. Note: Input all amounts as positive values. b-2. What is your margin? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. b-3. What is your effective annual return if you cover your short position at this price in three months? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. You believe the price of Freeze Frame Company stock is going to fall, so you short 650 shares at a price of $61. The initial margin is 55 percent. Ignore dividends. a. Construct the equity balance sheet for the original trade. Note: Input all amounts as positive values. c-3. What is your effective annual return if you cover your short position at this price in three months? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. c-1. Construct equity balance sheets for a stock price of $66 per share. Note: Input all amounts as positive values. Answer is complete but not entirely correct. c-2. What is your margin? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal placesStep by Step Solution
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