How much does the investor gain

Assignment Help Finance Basics
Reference no: EM131434817

An investor shorts 100 shares when the share price is $50 and closes out the position six months later when the share price is $43. The shares pay a dividend of $3 per share during the six months. How much does the investor gain?

Reference no: EM131434817

Questions Cloud

Forward price and initial value of forward contract : A stock is expected to pay a dividend of $1 per share in two months and in five months. The stock price is $50, and the risk-free rate of interest is 8% per annum with continuous compounding for all maturities. An investor has just taken a short p..
Discuss reasons for supporting and not supporting : In a paper, discuss the various plans that would be appropriate for consideration and discuss the reasons for supporting and not supporting specific plans.
Cost of storing a barrel of oil for one : The spot price of oil is $80 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of the year. The risk-free interest rate is 5% per annum, continuously compounded. What is an upper bound for the one-year futur..
What are the fields in the node class : The LinkedList class uses another class called Node (which is defined inside LinkedList.java). What are the fields in the Node class? The Node class uses generics. Why?
How much does the investor gain : An investor shorts 100 shares when the share price is $50 and closes out the position six months later when the share price is $43. The shares pay a dividend of $3 per share during the six months. How much does the investor gain?
Stock symbol for rio tinto plc : Go to the website Yahoo! Finance and type in the letters "RIO" in the search box and select "Rio Tinto." You should now be directed to a Summary page where you will be able to view the beta for Rio Tinto. Note: RIO is the stock symbol for Rio Tint..
Describe the benefits and limitations of expert review : What is expert review? Describe the benefits and limitations of expert review. Describe the six different types of expert review methods. Summarize the guidelines expert reviewers should follow in order to write effective usability recommendations.
How are these issues likely to affect staffing : Bright Books is a book store chain established 10 years ago in northern Michigan. Bright Books has had great success in Michigan and Ohio and is beginning to expand into other states. Describe some strategic human resource issues Bright Books is like..
Calculate net present value : This assignment requires you to calculate net present value (NPV), which is the present value (PV) of benefits minus the PV of costs

Reviews

Write a Review

Finance Basics Questions & Answers

  What is meant by the term investment center

What is meant by the term investment center? How is the financial performance of investment centers measured? What are the three financial-performance measures for investment centers?

  Computing multiple cash flows for a year

Computing multiple cash flows for a year and the amount of the annuity shown below is the amount of each individual cash flow

  How is the concept of cost of goods sold different

How is the concept of cost of goods sold different than contribution margin? Explain the contribution margin concept/computation and when to use the information.

  Calculation of fair rate of return by using capm

Compute a fair rate of return for Intel common stock, which has 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has expected return of 16 percent.

  Abc inc borrows 100m jpy when jpy spot rate is jpy120 the

abc inc. borrows 100m jpy when jpy spot rate is jpy120. the jpy interest rate for the loan is 3. one year later when

  The market value of charcoal corporations common stock is

the market value of charcoal corporations common stock is 20 million and the market value of its risk-free debt is 5

  Construct and solve the dupont and modified dupont equations

Construct and solve the DuPont and Modified DuPont equations for Saratoga Farms. What would be the impact on ROE if the debt to TA ratio were 80%? What would be the impact on ROE if the debt to TA were 20%

  Calculate the value of the stock today

The firm's most recent annual dividend (D0), which was paid yesterday, was $1.75 per share. a. Calculate the value of the stock today.

  Your client has been given a trust fund valued at 1 million

your client has been given a trust fund valued at 1 million. she cannot access the money until she turns 68 years old

  What are the most critical strategy-related challenges

What are the most critical strategy-related challenges or decisions facing the organization

  Using an amortization schedule calculate his payoff amount

Let's say that the restaurant owner in Problem 4 above decides to go with the amortized loan option and after having paid 2 payments decides to pay off the balance. Using an amortization schedule calculate his payoff amount.

  What is the default risk premium on the corporate bond

If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd