Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you short-sell 300 shares of XYZ stock when the bid price is $30.19 and ask price is $30.40 with a commissioncharge of 0.5%. Suppose

Suppose you short-sell 300 shares of XYZ stock when the bid price is $30.19 and ask price is $30.40 with a commissioncharge of 0.5%. Suppose you also pay commission charges for purchasing the security to cover the short-sale, how much profit have you made if you close the short-sale when the bid price is $29.66 and ask price is $29.87?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Fast And Frugal Finance

Authors: William P. Forbes, Aloysius Igboekwu, Shabnam Mousavi

1st Edition

0128124954, 978-0128124956

More Books

Students also viewed these Finance questions