Assume that an investor lends 100 shares of jiffy inc

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Assume that an investor lends 100 shares of Jiffy, Inc. common stock to a short seller. The bidask prices are $32.00 - $32.50. When the position is closed the bid-ask prices are $32.50 - $33.00.

The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Evaluate the gain or loss to the lender. Assume the lender is not subject to a bid-ask loss or
commissions.

A. $164.00 loss
B. $100.00 gain
C. $100.00 loss
D. $164.00 gain

 

Reference no: EM13363744

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