Calculating long and short position profits

Assignment Help Financial Management

Reference no: EM131980536

Given that Hometown Care, Inc.'s stock is currently selling for $50 a share, calculate the amount of money that Calvin Haskins will make (or lose) on each of the following transactions. Assume all transactions involve 100 shares of stock, and ignore brokerage commissions. Input all answers as positive values.

He short-sells the stock and then repurchases the borrowed shares at $55.

Total loss of $ ___________

He buys the stock and then sells it some time later at $55.

Total gain of $ ____________

He short-sells the stock and then repurchases the borrowed shares at $40.

Total gain of $ _____________

Reference no: EM131980536

Questions Cloud

Discuss the performance of the mayo clinics revenue cycle : Discuss the performance of the Mayo Clinics revenue cycle, accounts receivables, cash flow, and inventory.

Enable them to get back into more solid financial position : Can you share why some organizations might opt for bankruptcy to enable them to get back into a more solid financial position?

Exchange rates between british pounds-japanese yen and euros : Consider the exchange rates between British pounds, Japanese yen, and euros:

The investment fund for the continental soccer league : You are chairperson of the investment fund for the Continental Soccer League. Determine how much revised semiannual payments should be after this rate change.

Calculating long and short position profits : Calculate the amount of money that Calvin Haskins will make (or lose) on each of the following transactions.

What is the total return of the TIPS in percentage : What is the total return of the TIPS in percentage? What is the total return of the TIPS in dollars?

ROE change in response to the change in capital structure : By how much would the ROE change in response to the change in the capital structure? Do not round your intermediate calculations.

What is the effective annual interest rate earned : What is the effective annual interest rate that you pay on the loan? What is the effective annual interest rate earned by your friend?

You only pay interest and never finish paying off full debt : For what monthly payment, you only pay interest and never finish paying off the full debt?

User Account

All Pages