Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. on january 1, you sold short one round lot (that i

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's...

50.1K

Verified Solution

Question

Finance

image

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $27.50 per share. On March 1, a dividend of $1.10 per share was pald. On April 1, you covered the short sale by buying the stock at a price of $24.00 per share. You pald 45 cents per share In commissions for each transaction. a. What is the proceeds from the short sale (net of commission)? Proceeds from the short sale b. What is the dividend payment? Dividend payment c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $24.00 per share? Total cost including commission d. What is the net gain from your transaction? Net gain

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