Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Suppose you believe that ABC stock is going to fall, so you short sell 500 shares at a price of $50. You cover your short
Suppose you believe that ABC stock is going to fall, so you short sell 500 shares at a price of $50. You cover your short when the price hits $47.50 per share one year later. What is your rate of return on investment? Assume an initial margin of 60 percent O 5.00 percent O 7.93 percent 09.12 percent 8.33 percent O 8.57 percent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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