Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1.assume that you sell short 350 shares of a stock

1.Assume that you sell short 350 shares of a stock when the market price is...

60.1K

Verified Solution

Question

Finance

1.Assume that you sell short 350 shares of a stock when the market price is 32.1032.15. Your broker demands a 20% haircut for collateral and pays a short rebate of 3%. You borrow all needed cash for the transaction above the short proceeds at an interest rate of 4.8%. One year later, the price is 29.50 29.55, and you close the position. What is the net profit (in $)?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Civil Engineering
1.2K views

Using this table, please fill the table, draw the stress strain curve and then answer the...

Physics
1.2K views

You are arguing over a cell phone while trailing an unmarked police car by 26.0 m....

Biology
1.2K views

Multiple Choice O the season of the year O the color of light the color...

Physics
1.2K views

16 A 200 gram liquid sample of Alcohol Y is prepared at 6 C The...

Physics
1.2K views

View In English Liquid rises in a capillary upto a height of 8 cm The...

Physics
1.2K views

In the arrangement shown in figure coefficient of friction between the two blocks is 2...

Algebra
1.2K views

Use the formula A-P(1+r)? to find the rate r at which $2000 compounded annually grows...

Accounting
1.2K views

Required information Problem 09-61 (LO 09-4) (Algo) [The following information applies to the questions displayed...

Accounting
1.2K views

QS 24-17 Computation of break-even time LO A1 Heels, a shoe manufacturer, is evaluating the...

Accounting
1.2K views

Bowyer Driving Schools 2014 balance sheet showed net fixed assets of $3.4 million, and the...

Accounting
1.2K views

Concord Manufacturing has budgeted the following unit sales: 2022 Units April 26,000 May 45,000 June...

Finance
1.2K views

QC 11. Arnell Industries has just issued $50 million in debt (at par). The firm...