Anna opened a 100-share short position in DEF stock at the bid-ask prices of 41.10-41.20. She later added another 100 shares of

Question

4 years ago

7

Anna opened a 100-share short position in DEF stock at the bid-ask prices of 41.10-41.20. She later added another 100 shares of

DEF to her short position at the bid-ask prices of 36.10-36.20. When she closed her total position of 200 shares, the bid-ask prices were 31.00-31.10. The commission rate is 2.0%. a) What is Anna’s profit or loss? b) If the market interest rate is 4% and the short rebate rate is 3%, what is the lender’s gain from lending 200 shares to Anna? Ignore profit from commissions and spread

Business

1 answer:

melomori [17] · Answer 1 · 2022-02-02T10:54:16+03:00

melomori [17]4 years ago

8 0

Answer:

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Explanation:

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