Now you have $200. And you expect the stock price fall to $10 tomorrow while its...
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Now you have $200. And you expect the stock price fall to $10 tomorrow while its current price is $25. The rent of borrowing a share overnight is $4 right now. How can you profit from this price drop with short selling? What is the value of your profit? How can you intensify your profit with leverages (margins)? (30 scores) Now you have $200. And you expect the stock price fall to $10 tomorrow while its current price is $25. The rent of borrowing a share overnight is $4 right now. How can you profit from this price drop with short selling? What is the value of your profit? How can you intensify your profit with leverages (margins)? (30 scores)
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Answer rating: 100% (QA)
To profit from the price drop with short selling the following steps can be taken Borrow a share of ... View the full answer
Related Book For
Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
Posted Date:
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