In 2020, the Share price of G4S Botswana was steady at P3.40 between the AGM date in
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Question:
In 2020, the Share price of G4S Botswana was steady at P3.40 between the AGM date in May 2020 but fell to P3.00 on the 8th of March 2021 following Executive and board changes. The price persisted at P3.00 even after the 2021 AGM in May until November 26th when it fell slightly to P2.99. On the 17th of January 2022, the price fell further to P2.70, a price maintained to date.
In light of the apparent mini trend, A friend has suggested that you short-sell G4S until after the upcoming AGM. What do you think?
On hindsight, what option strategy could one have taken in order to profit from the price changes between the AGM of May 2021 and November 26th?
Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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