Register
Wiley sold short 100 shares of ACME stock at a price of $80 per share. While the position was open, a dividend of $2 per share was distributed. Wiley covered the short position at $50 per share. What is
104k views
3 votes
Wiley sold short 100 shares of ACME stock at a price of $80 per share. While the position was open, a dividend of $2 per share was distributed. Wiley covered the short position at $50 per share. What is his total gain, ignoring commissions and borrowing costs?

User Dushyant Dagar
by
5.4k points

1 Answer

4 votes

Answer:

His total gain, ignoring commissions and borrowing costs is $2800

Step-by-step explanation:

Gain = (Sales price - purchase price - Dividend ) * No of shares

= ( 80 - 50 - 2) * 100

= $ 2800

User Larsivi
by
4.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.4m questions

7.0m answers

Other Questions

Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC
For this question, assume that the expected rate of inflation is a function of the past year's inflation. Also, assume that the unemployment rate has been equal to the natural rate of unemployment for
Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's
This problem has been solved! See the answer Currently, Warren industries can sell 15-year, $1,000 par value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the
Link Copied!