You decided to short 150 shares of AMZN when it was trading at $250 a share....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You decided to short 150 shares of AMZN when it was trading at $250 a share. Suppose that your initial margin is 50%. While you are short the stock, AMZN pays a dividend of $6.50 a share. At the end of one year, you buy 150 shares of AMZN at a price of $200 and close out your position. What is your rate of return on the investment? Express your answer in percent and round it to 2 decimal places. For example, if your answer is 0.25456, then please write down 25.46 (without the percent sign). You decided to short 150 shares of AMZN when it was trading at $250 a share. Suppose that your initial margin is 50%. While you are short the stock, AMZN pays a dividend of $6.50 a share. At the end of one year, you buy 150 shares of AMZN at a price of $200 and close out your position. What is your rate of return on the investment? Express your answer in percent and round it to 2 decimal places. For example, if your answer is 0.25456, then please write down 25.46 (without the percent sign).
Expert Answer:
Answer rating: 100% (QA)
When you short 150 shares of AMZN at 250 per share you receive a cash inflow of 37500 ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these finance questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The jet plane starts from rest at s = 0 and is subjected to the acceleration shown. Determine the speed of the plane when it has traveled 1000 ft. Also, how much time is required for it to travel...
-
What is OCBOA and why would a government choose to use OCBOA rather than GAAP?
-
Which statement is correct about a bank reconciliation statement? A. It contains bank charges and standing orders. B. It is part of the double entry book-keeping records. C. It is prepared by the...
-
Identify the use of technology to support sales activities
-
Brooks Long expects to receive a $600,000 cash benefit when she retires five years from today. Ms. Longs employer has offered an early retirement incentive by agreeing to pay her $360,000 today if...
-
In the video at https://www.youtube.com/watch?v=9pE6KOCi_os "Information Systems, its Impact on Organization and Society" by Anuradha Bhatia Explain the flow of information in IS and its impact on...
-
In early 2016, Doc and Lyn McGee formed the McGee Cake Company. The company produced a full line of cakes, and its specialties included chess cake,* lemon pound cake, and double-iced, double...
-
Discuss the challenges made faced by manufacturing industry during covid time?
-
How do CERT volunteers prepare for disasters?
-
Please solve all the question on Linux or ubuntu solve all the question in this project Question 1 Write the proper Linux command(s) to perform each of the following tasks. For each task record the...
-
LINUX please answer these question with JUST one linux command 1)set the default permissions for newly created directories so the user has full permissions, the group has write and execute, and...
-
What factors contributed to Davids elevated plasma K + concentration (hyperkalemia)? Was his K + balance positive, negative, or normal? How did the initial treatment with insulin and saline help to...
-
Why was her pulse rate so high while she was supine? Why was her skin cool and clammy? If her pulse rate had been measured while she was upright, would it have been higher, lower, or the same as when...
-
Vegas Noodle House reported the following for 2018. Beginning Inventory $ 25,000 Ending Inventory $ 15,000 Food Purchases $ 220,000 $ 2,000 $ 750,000 $4,000 Promotional Meals Food Sales Employee...
-
Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected information (in millions):...
-
Multi-Star, Inc., had sales of $890,000, cost of sales and operating expenses of $450,000 and $200,000, respectively, and 10,000 shares of common stock outstanding. Calculate the amount of earnings...
-
The annual financial statements of all large, publicly owned corporations are audited. a. What is an audit of financial statements? b. Who performs audits? c. What is the purpose of an audit?
-
How can operating at 100 percent of capacity create unfavorable variances?
-
The cement industry is an example of an undifferentiated oligopoly. The automobile industry is a differentiated oligopoly. Which of these two is more likely to advertise? Why?
-
What is the purpose of a brand name? What would occur if any maker of aspirin could put a Bayer Aspirin label on its product?
-
The South American cocaine industry consists of several families that obtain the raw material, refine it, and distribute it in the United States. There are only about three large families, but there...
Study smarter with the SolutionInn App