On January 1, you sold short two round lots (.e.. 200 shares) of Four Sisters stock at $52 per share. On March 1, a dividend of $1.50 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $45 per share. You paid 50 cents per share in commissions for each transaction. D Required: What is the value of your account on April 1? Note: Negative amount should be indicated by a minus sign. Account value
On January 1, you sold short two round lots (.e.. 200 shares) of Four Sisters stock at $52 per share. On March 1, a dividend of $1.50 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $45 per share. You paid 50 cents per share in commissions for each transaction. D Required: What is the value of your account on April 1? Note: Negative amount should be indicated by a minus sign. Account value
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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Transcribed Image Text:On January 1, you sold short two round lots (l.e., 200 shares) of Four Sisters stock at $52 per share. On March 1, a dividend of $1.50
per share was paid. On April 1, you covered the short sale by buying the stock at a price of $45 per share. You paid 50 cents per share
in commissions for each transaction.
Required:
What is the value of your account on April 1?
Note: Negative amount should be indicated by a minus sign.
Account value
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