K Suppose that Tesla stock is currently selling at $261.29 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain loss that Olivia Crowe realizes if she makes a 100-share transaction. (Enter all losses as negative numbers.) a. She sells short and repurchases the borrowed shares at $304.14 per share. b. She takes a long position and sells the stock at $304.14 per share. c. She sells short and repurchases the borrowed shares at $254.45 per share. d. She takes a long position and sells the stock at $254.45 per share. a. If she sells short and repurchases the borrowed shares at $304.14 per share, the gain or loss she realizes is $. (Enter a loss as a negative number and round to the nearest cent.)
K Suppose that Tesla stock is currently selling at $261.29 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain loss that Olivia Crowe realizes if she makes a 100-share transaction. (Enter all losses as negative numbers.) a. She sells short and repurchases the borrowed shares at $304.14 per share. b. She takes a long position and sells the stock at $304.14 per share. c. She sells short and repurchases the borrowed shares at $254.45 per share. d. She takes a long position and sells the stock at $254.45 per share. a. If she sells short and repurchases the borrowed shares at $304.14 per share, the gain or loss she realizes is $. (Enter a loss as a negative number and round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose that Tesla stock is currently selling at $261.29 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Olivia Crowe realizes if she
makes a 100-share transaction. (Enter all losses as negative numbers.)
a. She sells short and repurchases the borrowed shares at $304.14 per share.
b. She takes a long position and sells the stock at $304.14 per share.
c. She sells short and repurchases the borrowed shares at $254.45 per share.
d. She takes a long position and sells the stock at $254.45 per share.
a. If she sells short and repurchases the borrowed shares at $304.14 per share, the gain or loss she realizes is $ (Enter a loss as a negative number and round to the nearest cent.)
Expert Solution
Step 1: Formula.
According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts needs to be answered.
Accordingly , we have solved 1st sub 3 parts for you.
Gain/loss on shares = Sellling price - purchase price
If the result is negative , then it is loss.
If the result is positive , then it is gain.
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