Grace got a loan of $500 from her bank, and she had to repay it with $550. Which term describes the extra money Grace had to pay
1 answer:
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Answer:
13.33%
Explanation:
Short sale = 500 shares × $25 = $12500
Margin required to be deposited as a percentage of transaction of short sale = $12500 × 60% = $7500
Rate after one year, $23
A short position will be squared by a reverse long (buy) position,
Thus, 500 shares long at $ 23 = 500 shares × 23 = $11,500
Thus, gain on the transaction:
= Short sale value - long buy value
= $12,500 - $11500
= $1000
Since, the contract being derivative wherein only net amount i.e $1000 would be transacted, i.e actually received here, the money invested is $7500 which was deposited in the margin account.
Rate of return after 1 year would be = =
= 13.33%
Answer:
A. 4.3 batches
B. 215 parts
C. 3 batches
D. 184 parts
Explanation:
Please find explanation attached
