Short sales of vw shares

Assignment Help Finance Basics
Reference no: EM132403219

In the midst of the latest financial crisis, in October 2008, hedge funds believed they were on safe ground by short selling shares of Volkswagen (VW), which they saw as overvalued when all car manufacturers are feeling the squeeze. What none of them knew was that Porsche had quietly been building up a 74.1 per cent stake in VW through intermediaries. What happened next? Did the hedge funds profit from their short sales of VW's shares? Why?

Reference no: EM132403219

Questions Cloud

Perform the relevant data analysis tasks : Perform the relevant data analysis tasks by answering the guided questions provided - using the visualizations created discuss the findings from the data set
Price of home depot stock : What would happen to your investment if the price of Home Depot stock rose to ?$66.48 per share? (ignoring any possible? dividends)?
Analysis of various tools useful in policy making : Comparative analysis of various tools useful in policy making. local train schedules to minimize energy use and passenger wait times in a SmartCity environment.
Compute standard deviation and the expected return of mvp : a) Compute standard deviation and the expected return of mvp.
Short sales of vw shares : What happened next? Did the hedge funds profit from their short sales of VW's shares? Why?
Determine profit or loss from transactions : Determine your profit or loss from these transactions. Your profit? (or loss) from these transactions is ?$___. ?(Round to the nearest? dollar.)
Determining the bond coupon rate : If a firm increased its current assets and decreased its current liabilities, the firm's net working capital would (increase/decrease/stay constant)
Compute the transmitted signal using direct sequence : Compute the frequency assignments for each of the sixteen possible 4- bit data combinations and Explain why the square and circle shapes cells for cellular.
Construct a swap between the two parties : Above are rates that Party A and Party B can borrow in the fixed and floating rate markets. Can the two parties benefit from entering in a swap?

Reviews

Write a Review

Finance Basics Questions & Answers

  Gross revenue last year were 99 million and total costs

gross revenue last year were 9.9 million and total costs were 5.0 million. blaine company has 1.6 million shares of

  What is the projected net present value of this project

The pre-tax cost of debt is 9.2 percent and the cost of equity is 12.1 percent. The tax rate is 34 percent. What is the projected net present value of this project?

  Consider the following data for a european option

consider the following data for a european option expiration 6 months stock price 80 exercise price 75 call option

  If a company wants to increase its reported income by

if a company wants to increase its reported income by manipulating its investment accounts which should it do?a sell

  What is the project profitability index

If the discount rate is 15%, what is the project's profitability index, PI? [2 decimal places]

  Balloon payment on your house five years

You have to make a balloon payment on your house five years from now of $15,000. If money can earn an average of 6 percent a year for the five-year period, what factor will you use to determine what to deposit now?

  Issue of globalization and trade in context

As a business owner, you need to approach the issue of globalization and trade in context. With all the complicated tariff and nontariff trade policies, organizations, and government involvement, the important question to ask is why the United Sta..

  Which you would use option pricing

Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

  How much did christina pay

Christina policy covered the medically necessary service performed in a nursing home setting. her total bill was $125,765. how much of Christina expenses was paid by her insurance policy? how much did Christina pay?

  Create a hedge against rising interest rates

However, the firm's financial manager is concerned that interest rates will climb even higher in coming months.

  Essay on the influence of entrepreneurship in health care

Write a 1,050-word essay on the influence of entrepreneurship in health care. Include the following in your essay:

  Explain theory about capital project projection satisfaction

Explain Theory about capital project projection satisfaction of the hurdle-rate requirements and what other criteria impact the decision

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