Jack an investor on day 1, buys 7000 shares of y Inc. At $29 per share with beta of 1.2 , he then sells 4000 shares of z Inc. At 39 per share with beta of 1.85 , jack also obtains a complete hedge by NASDAQ, futures at $1000, next day jack closes out his position , the NASDAQ futures dropped by 2% , share price of y Inc , dropped by 1.5% and the share price of zinc rosed by 1.5% what is the overall gain |loss of jack

Q: Assume Lark purchased 100 shares of Tesla stock immediately after COVID-19 lockdowns were announced…

A: number of shares=100 Initial price= $89.01/share Current price= $486.64 R=(Vf - Vi)/Vi where, R=…

Q: 1) Lisa has a margin account and deposits $2500,000 into it. Assume that the prevailing margin…

A: Initial margin is amount required to deposit in the account with broker and start trading in the…

Q: 17. Late in Year One, a company buys one share of a publicly traded company for P75. This investment…

A: correct option with proper explanation are as follows

Q: The shares of Exxon are currently trading at $88. A “put buyer" recently paid a premium of $5 for…

A: Put Seller's Profit is limited to the premium received as the seller of an option doesn't have the…

Q: An investor bought 10 years ago 10 shares of stock at $65/per share. For the first 5 years, he…

A: Rate of return = (P1 - P0 + D)/P0 Where , P1 = Selling Price P0 = Purchase Price  D = Dividends

Q: A manager buys three shares of stock today, and then sells one of those shares each year for the…

A: TimePriceAction0$200Buy 3 shares1$220Sell 1 share2$220Sell 1 share3$220Sell 1 shareRequired:Part-a)…

Q: Suppose you buy 300 shares of Applied Materials Corporation at the beginning of year 1 for $43.00…

A: To calculate the geometric average return, start by determining the holding period return for each…

Q: An investor owned shares worth $800 on Jan 1. On June 30 of the same year, the shares are worth…

A: ROI is calculated by subtracting the initial cost of the investment from its final value, then…

Q: Home Depot (HD) issued preferred stock shares at a face value of $100 per share with a yield at the…

A: For Part 1 Total Return = (Current Value / Initial Value) - 1For Part 2 For an investor buying these…

Q: Wyclef has an investment of 500 shares of stock in Partridge Capital valued at $12 each, Partridge…

A: Solution:Stock dividend means the issue of additional shares to the current shareholders in form of…

Q: An investor has unrealized gains in 100 shares of Amazin stock for which he does not wish to pay…

A: A stock portfolio is a collection or combination of individual stocks and other securities owned by…

Q: An investor short sells 250 shares of a stock for $43 per share. The initial margin is 60%. Ignoring…

A: Initial margin The amount kept aside to protect from the risk of the counterparty is known as the…

Q: On 1s January you created a portfolio by purchasing 2000 shares of Oman Fibre Optics 2 Rial each,…

A: Holding period Yield = (Ending Value - Beginning Value + Dividend) / Beginning value

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you recelved a cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Mr. Cruz bought 5,000 MXT shares at P2.00. He received cash dividends of P0.20 per share. The par…

A: Number of shares = 5000 Purchase price = P2.00 Sale price = P3.00

Q: 1. Michael Jordan purchases (long) 10 shares of XYZ stock for 23.00 per share. Six months from now…

A: When someone purchases stock then prices may increase or may decrease and profit and loss can be…

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Q: purchased 90 shares of a stock at the start of the month, with part of the purchase financed by your…

A: In stock market trading is done through brokers and broker require margin in account and remain…

Q: C. Spencer Grant is a New York-based investor. He has been closely following his investment in 100…

A: Share Price: The share price represents the current value of the security that is traded on the…

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A: Given:Stock price = $100 per shareSubscription price = $20 per shareNumber of rights = 3

Q: 34. Joe Banks purchased 300 shares of a $42 stock in his margin account. His broker charges $6.00 in…

A: A margin call is triggered when the value of securities in a margin account falls below a specified…

Q: XYZ Corp. has announced that it will take four rights to buy a new share in the offering at a…

A: A rights issue is a corporate finance strategy employed by publicly traded companies to raise…

Q: What is your rate of return?

A: The rate of return is employed to assess the profitability of an investment over a given time frame.…

Q: The share price of XYZ on April 24 is $124. A trader sells 200 put options on the stock with astrike…

A: Number of put options (N) = 200 Strike price (S) = $ 120 Option price (O) = $ 5 Price at the time of…

Q: The price of a stock starts at $60 per share. The stock price rises at an average rate of $0.75 per…

A: The dividend yield is the yearly dividend payments to a firm's shareholders expressed as a…

Q: You decide to sell 100 shares of Topgun Enterprises Inc. short when it is selling a yearly high of…

A:

Q: An investor buys 100 shared of stocks on margin price at a price of $70 per share. The initial mar…

A:

Q: he Nasdaq 100 Trust (QQQQ) opened 2005 at $40 per share and closed 2005 at $41.50 per share. It paid…

A: Short position believe that stock price will go down and will purchase at lower price but higher…

Q: Which of the following is a primary market transaction?   ​You sell 200 shares of Johnson &…

A: The objective of the question is to identify which of the given scenarios is a primary market…

Q: Suppose Kashweka purchases 100 shares of ZB on 1 January at K50 per share. ZB pays K2.30 annual…

A: As per the given information: Shares purchases on 1 January - K50 per shareAnnual dividend per share…

Q: Wendy purchased 800 shares of Robotics stock at $4 per share on 1/1/21. Wendy sold the shares on…

A: Beta = 1.3 Risk free rate = 2% Market risk premium = 7%

Q: Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $85 per…

A: ParticularAmountNo. of Shares short sell $  1,000.00Price at Short Sell $       85.00Initial…

Q: In March of this year, Ermine felt the market had nowhere to go but down.  Accordingly, she sold…

A: Generally the return is calculated by the following simple formula  Return = (I + dP)/P0 Where  I =…

Q: Subject : - Finanace    An investor bought 10 shares of stock T for $800 per share. One year…

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Q: On 1 June, shares in Blue.com traded at $61.25. Your broker allowed you to buy the shares on margin…

A: Percentage of return = Total return / Initial price of shares

Q: Seven months ago, you purchased 580 shares of Mitchum Trading for $70.53 per share. The stock pays a…

A: Variables in the question:Period of purchase=7 months agoNo. of shares purchased=580Dividend per…

Q: Wendy purchased 800 shares of Genetics Stock at $15 per share on 1/1/12. Wendy sold the shares on…

A: Holding period return is calculated on the basis of total returns from the asset. It can be…

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A: An option is a financial contract that gives the holder the right, but not the obligation, to buy…

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

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Q: Peter owns 200 shares which are currently trading at $57 per share. He implements a protective put…

A: A protective put is a hedging strategy where the investor owns the shares and to avoid downside risk…

Q: A manager buys three shares of stock today, and then sells one of those shares each year for the…

A: The average return of an investment portfolio over a certain time period is determined using the…

Q: Suppose a Sam's company in CA, completes an $95 million IPO priced to the public at $50 per share.…

A: Solution We are provided with the following information Amount raised from IPO = $ 95 million = $…

Q: Cindy buys a stock on January 1 for $25.  It pays a total dividend of $1 during the first year, and…

A: The holding period return (HPR) is the total return that an investor earns on an investment over a…

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A: An option which is a contract gives the buyer the option to buy or sell the underlying asset.…