What is additional gain or loss due to leasing the asset

Reference no: EM13197528

Fundamentals of Derivatives Markets

1. Assume that you open a 100 share short position in Jiffy, Inc. common stock at the bid-ask prices of $32.00 - $32.50. When you close your position the bid-ask prices are $32.50 - $33.00. You pay a commission rate of 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. What is your additional gain or loss due to leasing the asset?

A. $96.00 gain
B. $160.00 loss
C. $0
D. $64.00 loss

Reference no: EM13197528

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