FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You sell short 700 shares of Microsoft that are currently selling at $70 per share. You post the 50% margin required on the short sale.

image text in transcribed
You sell short 700 shares of Microsoft that are currently selling at $70 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $63? (Ignore any dividends)

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

Contemporary Economics An Applications Approach

Contemporary Economics An Applications Approach

Authors: Robert Carbaugh

8th Edition

1138652199, 978-1138652194

More Books

Students also viewed these Finance questions

Question

★★★★★
One division of a large defense contractor manufactures telecommunication equipment for the military. This division reports that 12% of non-electrical components are reworked. Management wants to...

Answered: 1 week ago

Question

★★★★★
Required information [The following information applies to the questions displayed below.] Brianna's Boutique has the following transactions related to its top-selling Gucci purse for the month of...

Answered: 1 week ago

Question

★★★★★
Irne has four books that she wants to put on a library shelf. Three of these books form a 3-volume set of a dictionary, so that they are marked as Volumes I, II, and III, respectively. (i) Find an...

Answered: 1 week ago

Question

★★★★★
Mini- Case: Control Environment. Refer to the mini- case Unhealthy Accounting at HealthSouth shown on page C14 and respond to Questions 3 and 4. 3. How can auditors determine a companys true tone at...

Answered: 1 week ago

Question

★★★★★
What does the author of Drywall recommend as the first coat over the drywall? A . Latex flat - finish paint B . Primer C . Primer - sealer D . Sealer

Answered: 1 week ago

Question

★★★★★
on january 1,2020 a company signs a $6000 three year note payable bearing 6%annual interest. the original principal and interest is paid on december 31,2022. interest is compounded annualy. how much...

Answered: 1 week ago

Question

★★★★★
For workers' compensation in the state of Massachusett , What are the benefits and drawbacks of workers' compensation to employers and employees?

Answered: 1 week ago

Question

★★★★★
Kyles Manog has taken the pop world by storm over the first six months of his career and has asked you to prepare some financial statements for that trading period. Income Kyles sold 4 0 , 0 0 0 DVD...

Answered: 1 week ago

Question

★★★★★
1. Ralph Abernathy owns a small coffee shop. He wants to know the average number of customers queuing (lining up) in his coffee shop, to decide whether he needs to add more space to accommodate more...

Answered: 1 week ago

Question

★★★★★
provide a brief outline of how diversity policy needs to apply to your place of work/type of business

Answered: 1 week ago

Question

★★★★★
United States dollar strengthen and weakening: Present current valuation (U.S. Dollar versus the two countries' currency) and effect on corporate profits for China vs Indonesia

Answered: 1 week ago

Question

★★★★★
Discuss how technology impacts HRD evaluation

Answered: 1 week ago

Question

★★★★★
Discuss how various individual differences affect the learning process

Answered: 1 week ago

Question

★★★★★
Explain the importance of identifying individual performance deficiencies and developmental needs in planning and developing training and HRD programs

Answered: 1 week ago

Previous Question Next Question