Question
You are a portfolio manager with the Tiger Fund. You have delegated authority to buy and sell stocks. You also have the authority to buy
You are a portfolio manager with the Tiger Fund. You have delegated authority to buy and sell stocks. You also have the authority to buy stock on margin and sell stock short. You decide that NVIDIA is overpriced and decide to sell 1,000 shares short at $600 a share. You have $450,000 in cash in your account and no other positions. After you sell the shares short, the price of NVIDIA falls to $525 a share.
How much equity do you have in your account?
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
