What would your return be for this trade

Assignment Help Financial Management

Reference no: EM131983678

A) After seeing Clinton's lead in the polls, you decided to short shares of GEO at the closing price on 8/1. You then cover your short position at the close of the market on Election Day, 11/8. You had $5000 in cash in your account, and your broker requires a 70% initial margin and 40% maintenance margin. What would your return be for this trade (in dollars)? Assume you cannot short fractions of shares.

B) Continuing from above, find the dividend paid by GEO during this time. You can do this on the Historical Data section on Yahoo Finance. Just select "Dividends Only" in the "Show" menu. How would the dividend have affected your profit on the trade in part A?

Reference no: EM131983678

Questions Cloud

Identification of the aurizon holdings limiteds mission : Identification of the Aurizon holdings limited mission-Provide recommendations about the implementation of ABC model for your company based on research findings

Business strategy and business environment challenges : What capabilities does Samsung need as a result of the business strategy and business environment challenges

Calculate activity rates for each of the three cost pools : Sultan Company uses an activity-based costing system. At the beginning of the year. Calculate the activity rate for each of the activity cost pools.

Prepare a two page summation using the process : Prepare a two page summation using the process we presented in Module One for case study's taken from The Case Study Handbook by William Ellet.

What would your return be for this trade : What would your return be for this trade (in dollars)? Assume you cannot short fractions of shares.

Encourages employee effectiveness : The type of culture your department exhibits, and why it encourages employee effectiveness

Find the estimate the required balance of the allowance : Using the aging of accounts receivable method, find the estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2016.

Potential expansion of legal of sports betting outside : Given the facts of the current, yet to be resolved, Supreme Court case involving the potential expansion of legal of sports betting outside of Nevada

What challenges may this firm have encountered : Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth.

User Account

All Pages