Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own 3,000.0 shares of the XYZ Corp. stock. The stock is currently selling @ $4.0 a share. You do not intend to sell your

You own 3,000.0 shares of the XYZ Corp. stock. The stock is currently selling @ $4.0 a share. You do not intend to sell your stock but you want to fully- hedge your long position by short selling 3,000.0 shares of the stock. (Ignore interest). Assume that you own only 2,000 shares & you short-sold 4,000 shares.If the stock price goes up to $5.0 a share, your total profit/loss is:- Select one

: a. $3,000.0

b. $2,000.0

c. - $1,000.0

d. - $2,000.0

please help me fast

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

Financial Analysis With Microsoft Excel

Authors: Timothy R. Mayes

9th Edition

0357442059, 9780357442050

More Books

Students also viewed these Finance questions

Question

Why are misleading green claims made for so many products?

Answered: 1 week ago

Question

What is a role model? (p. 8)

Answered: 1 week ago