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Prices for one share of ABX stock: Time Bid Ask Today 21.2 21.251 One year from today 17.5 17.6 Prices for one share of MTZ
Prices for one share of ABX stock: Time Bid Ask Today 21.2 21.251 One year from today 17.5 17.6 Prices for one share of MTZ stock: Time Bid Ask Today 59.75 601 One year from today 75.6 76 Having just watched "The Big Short", Tom decides he will try short selling shares of mortgage company stocks. He sells 1,000 shares of ABX stock and 300 shares of MTZ stock. One year later, Tom buys back all of his shares. His brokerage firm charges 0.01 per share of all stock transactions. The continuously compounded risk-free rate is 3%. How much in total does Tom pay at the end of one year to close out the short position? Possible Answers 39,112 B 40,193 c 40,293 D 40,413 E 40.440
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