Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You just sold short 500 shares of Wetscope, Inc., a fledgling software firm, at $66 per share. You cover your short when the price hits

You just sold short 500 shares of Wetscope, Inc., a fledgling software firm, at $66 per share. You cover your short when the price hits $56.50 per share one year later. If the company paid $0.85 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 70 percent.

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

Finance For Executives Managing For Value Creation

Authors: Gabriel Hawawini, Claude Viallet

3rd Edition

0324274319, 9780324274318

More Books

Students also viewed these Finance questions

Question

How does your message use nonverbal communication?

Answered: 1 week ago

Question

What reactive strategies might you develop?

Answered: 1 week ago