Question

At the beginning of the month, you sell short 200 shares of Wells Fargo that are...

At the beginning of the month, you sell short 200 shares of Wells Fargo that are currently selling at $45 per share. One month later you cover your short position at $35 per shares. During the month, Wells Fargo issued $2 dividend per share. What is you return during this month?

0.178

0.267

-0.178

0.222

-0.267

question 16

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Financial question compost of 3 parts: Matthews bought 100 Wells Fargo shares for $4/share and received...
Financial question compost of 3 parts: Matthews bought 100 Wells Fargo shares for $4/share and received $0.4/share during the time, what is his rate of return for his investment in wells Fargo shares if he sold his shares for $5/share? Matthews bought 100 capital one bank shares for $3/share and received $0.3/share during the time, what is his rate of return for his investment in capital one bank shares if he sold his shares for $3.6/share? Assuming that Matthews portfolio...
1) You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25...
1) You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account, and the firm does not pay any dividends.) A. $32.25 B. $31.50 C. $28.85 D. $35.71 2) You purchased 250 shares of common...
You decide to sell 1,000 shares of Marston Industries short when it is selling at ¢35....
You decide to sell 1,000 shares of Marston Industries short when it is selling at ¢35. Your broker requires an initial margin deposit of 55 percent with no commission on the sale and a 6 percent interest rate on your margin loan. While you are short, Marston Industries pays a 75 pesewas per share dividend. At the end of one year you buy Marston Industries shares to cover your short sale at ¢30 and are charged a commission of ¢15....
You decide to sell 100 shares of Topgun Enterprises short when it is selling at a...
You decide to sell 100 shares of Topgun Enterprises short when it is selling at a yearly high of $42.25 .your broker tells you that you're in margin requirement at 60% and if the commission on the sale is $20. wow you are short topgun pays a $.85 per share dividend. at the end of one year you buy your topgun shares (cover youre short sale) at $44 and are charged a commission are $20 and a 5% interest rate...
16) You are bearish on Telecom and decide to sell short 100 shares at the current...
16) You are bearish on Telecom and decide to sell short 100 shares at the current market price of $45 per share. a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?...
You decide to sell short 300 shares of Charlotte Horse Farms when it is selling at...
You decide to sell short 300 shares of Charlotte Horse Farms when it is selling at its yearly high of $57. Your broker tells you that your margin requirement is 45 percent and that the commission on the purchase is $495. While you are short the stock, Charlotte pays a $2.30 per share dividend. At the end of one year, you buy 300 shares of Charlotte at $47 to close out your position and are charged a commission of $480...
You sell SHORT 500 shares of MSFT that is currently selling at $25 per share. You...
You sell SHORT 500 shares of MSFT that is currently selling at $25 per share. You post 50% margin for the trade. What will be your rate of return if in one year MSFT is trading at $21 per share?
As the CFO of Dragon Airways (ticker symbol: DRAG) you decide to sell 100,000 shares in...
As the CFO of Dragon Airways (ticker symbol: DRAG) you decide to sell 100,000 shares in a       secondary offering to raise additional capital for expansion. Your shares currently trade at $100/share and have a beta of 1.25. It will take several weeks to complete the registration process through the SEC and you are concerned that the overall stock market will fall in the interim. So you decide to hedge the stock sale by selling short the shares of another...
You sell short 700 shares of Microsoft that are currently selling at $30 per share. You...
You sell short 700 shares of Microsoft that are currently selling at $30 per share. You post the 40% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27? (Ignore any dividends.)
You short-sell 400 shares of XYZ Co., now selling for $100 per share. You post the...
You short-sell 400 shares of XYZ Co., now selling for $100 per share. You post the 50% margin required on the short sale. If the share price falls to $90 per share and you close your short position, what is your holding-period return on the transaction? (Assume the stock pays no dividends, and there is no interest paid on the posted margin.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT