Question: On May 1 you sold short one round lot i
On May 1, you sold short one “round lot” (i. e., 100 shares) of Zenith stock at $ 14 per share. On July 1, a dividend of $ 2 per share was paid. On August 1, you covered the short sale by buying the stock at a price of $ 9 per share. You paid 50 cents per share in commissions for each transaction. What is the value of your account on August 1?
Relevant QuestionsYou are bullish on BCE stock. The current market price is $ 50 per share, and you have $ 5,000 of your own to invest. You borrow an additional $ 5,000 from your broker at an interest rate of 8 percent per year and invest $ ...Compare call options and stop- buy orders. Use Figure to analyze the effect of the following on the level of real interest rates: a. Businesses become more optimistic about future demand for their products and decide to increase their capital spending. b. ...Solve problems 20 and 21 for a client who uses your fund rather than an index fund. Problems 20– 23 are based on the following assumptions. Suppose that the lending rate is rf = 5 percent, while the borrowing rate that ...The correlation coefficients between pairs of stocks is as follows: Corr (A, B) = .85; Corr (A, C) = .60; Corr (A, D) =.45 Each stock has an expected return of 8 percent and a standard deviation of 20 percent. If you’re ...
Post your question