+ b) Kim was pessimistic about the NoGo Corporation. She expected the prices of NoGo's stocks...
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+ b) Kim was pessimistic about the NoGo Corporation. She expected the prices of NoGo's stocks to decrease significantly in the next few weeks and decided to short-sell 1000 NoGo shares at the current market price. The following was the limit order book of the NoGo stock when Kim placed her order. Price ($) 29.75 29.5 29.25 29 28.5 i. Limit buy orders ii. iii. No of Shares 400 800 500 200 600 Limit sell orders Price ($) 30.25 31.5 34.75 38.25 No of Shares 100 100 300 100 Calculate the average price at which Kim sold the 1000 NoGo stocks. How much money Kim needs to put into her brokerage account if the broker's initial margin requirement is 60% of the value of the short position? Kim bought 1000 NoGo stocks for $28 per share to close her short position. Estimate the rate of return she earned on her investment. (assume no fees, no interest or dividends paid)? Show your calculations. + b) Kim was pessimistic about the NoGo Corporation. She expected the prices of NoGo's stocks to decrease significantly in the next few weeks and decided to short-sell 1000 NoGo shares at the current market price. The following was the limit order book of the NoGo stock when Kim placed her order. Price ($) 29.75 29.5 29.25 29 28.5 i. Limit buy orders ii. iii. No of Shares 400 800 500 200 600 Limit sell orders Price ($) 30.25 31.5 34.75 38.25 No of Shares 100 100 300 100 Calculate the average price at which Kim sold the 1000 NoGo stocks. How much money Kim needs to put into her brokerage account if the broker's initial margin requirement is 60% of the value of the short position? Kim bought 1000 NoGo stocks for $28 per share to close her short position. Estimate the rate of return she earned on her investment. (assume no fees, no interest or dividends paid)? Show your calculations.
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Answer rating: 100% (QA)
To calculate the average price at which Kim sold the 1000 NoGo stocks we need to determine the weighted average price based on the available sell orde... View the full answer
Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
Posted Date:
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