Question: I need your help. I don't understand on this one. Would you explanation to me? I would be great appreciated:) Thank you. A stock is

I need your help. I don't understand on this one. Would you explanation to me? I would be great appreciated:) Thank you.

  • A stock is currently selling for $45 a share. What is the gain or loss on the following transactions?
  • a. You take a long position and the stocks price declines to $41.50.
  • b. You sell the stock short and the price declines to $41.50.
  • c. You take a long position and the price rises to $54.
  • d. You sell the stock short and the price rises to $54.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

EyeGuard Equipment Inc. (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications....

Q:

Hi, Can someone help me solve these homework questions? Please use a spreadsheet and show me step-by-step solution. Please see the attached file for the questions. Thank you One- Period Binomial...

Q:

Hello, I am in need of help with a huge assignment. I am responsible for only one part of this, but I would like to understand what everything means in the end. At any rate, please let me know if...

Q:

Skills assessment Appendix 1 - Simulation pack Criteria Unit code and name BSBPMG423 | Apply project cost management techniques (Release 1) Qualification/Course code and name BSB40920 | Certificate...

Q:

Report Format: Your report should include: II. Executive Summary (1 page in length). The Executive Summary is a concise overview of the report. The Case Study Report should be written from the...

Q:

ECO550 Week 7 Discussion Board 7 Predicting Price-Setting Strategies...

Q:

CASE 11 Netflix in 2012: Can It Recover from Its Strategy Missteps? Arthur A. Thompson The University of Alabama hroughout 2010 and the first six months of 2011, Netflix was on a roll. Movie...

Q:

I need help with the following case. Questions 4 and 5 specifically ISSUES IN ACCOUNTING EDUCATION Vol. 20, No. 2 May 2005 pp. 195-212 Reporting Earnings at Summer Technology A Capstone Case...

Q:

I need help with the following case. Questions 4 and 5 specifically ISSUES IN ACCOUNTING EDUCATION Vol. 20, No. 2 May 2005 pp. 195-212 Reporting Earnings at Summer Technology A Capstone Case...

Q:

In 250 - 300 word explanation supporting your position Using the annual report from Walmart, discuss the risks the company faces and the actions they take to mitigate those risks. Refer to the...

Q:

Please help solve problem 21-37 in chapter 21. What is the working capital of , 12/31/x1 ? and please help solve problem 21-38 ? thank you 21 Chapter Twenty-One Analyzing Financial Statements After...

Q:

What is meant by a prime rate?

Q:

XYZ Company manufactures audio speakers for desktop computer. The controller is currently preparing a budget for the second quarter of the year. The sales forecast is as follows: April May June July...

Q:

Find d 2 v d t 2 . v = 2 t 2 8 t 9 d 2 v d t 2 =

Q:

The following reaction is key when investigating the precipitation and dissolution of AB2CO3: Ag, CO (s) = 2 Ag* (aq) + Co (ag)K = 8.5 x 10 12 If we were to mix 0.00110 mol of solid A82CO3 in 2.00 L...

Q:

Six balls numbered 1 to 6 are placed in a bag. Some of the balls are grey and some are white. The balls numbered 2 and 5 are grey. The balls numbered 1, 3, 4, and 6 are white. A ball will be selected...

Q:

A person takes a multiple-choice exam in which each question has five possible answers. Suppose that the person has no idea about the answers to three of the questions and simply chooses randomly for...

Q:

A new sleeping pill is advertised to increase the daily sleeping time of insomniacs by an average of 2.7 hours, with a variance of 0.33. A government group conducts an independent study on the new...

Q:

More than one teacher has given the following advice: choose answer C when blindly guessing among four answers in a multiple choice test, since C is more often the correct answer than either A, B, or...

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

Learning Curves: European Electronics estimates the variable cost of producing each unit of a product as follows: The first unit requires 100 hours to make. Labor time is subject to an 80 percent...

Q:

Methods of Estimating CostsHigh-Low, Scattergraph, and Regression: The Franklin Plant of the Ramon Company manufactures electrical components. Plant management has experienced difficulties with...

Q:

Methods of Cost EstimationAccount Analysis, Simple and Multiple Regression: Mountain View Outdoor Products Corporation has prepared a schedule of estimated overhead costs for the coming year. This...