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Anna35 [415]
3 years ago
14

3. An investor shorts 100 shares when the share price is $20 and closes out the position six months later when the share price i

s $18.2. The shares pay a dividend of $0.2 per share during the six months. How much does the investor gain or lose (losses are indicated by a negative sign and profits by a plus sign)
Business
1 answer:
solniwko [45]3 years ago
7 0

Answer:

$160

Explanation:

Calculation to determine How much does the investor gain or lose

Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)

Investor gain=($1.8*100 shares)-($0.2*100 shares)

Investor gain=$180-$20

Investor gain=$160

Therefore The amount that the investor gain is $160

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