chapter3shortsale_i - 24000.00 St Price Investment...

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Chapter 3 Short Sales Chapter 3 Text Example Ending Return on Initial Investment 100000.00 St Price Investment Beginning Share Price 100.00 60.00% Number of Shares Sold Short 2000.00 170 -140.00% Ending Share Price 70.00 160 -120.00% Dividends Per Share 0.00 150 -100.00% Initial Margin Percentage 50.00% 140 -80.00% Maintenance Margin Percentage 30.00% 130 -60.00% 120 -40.00% Return on Short Sale 110 -20.00% Gain or Loss on Price 60000.00 100 0.00% Dividends Paid 0.00 90 20.00% Net Income 60000.00 80 40.00% Return on Investment 60.00% 70 60.00% 60 80.00% 50 100.00% Margin Positions 40 120.00% Margin Based on Ending Price 114.29% 30 140.00% 20 160.00% Price for Margin Call 115.38 10 180.00% A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
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Short Sales Solutions to Ques. 1-4 Ending Return on Initial Investment
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Unformatted text preview: 24000.00 St Price Investment Beginning Share Price 120.00 29.17% Number of Shares Sold Short 200.00 170-41.67% Ending Share Price 85.00 160-33.33% Dividends Per Share 0.00 150-25.00% Initial Margin Percentage 50.00% 140-16.67% Maintenance Margin Percentage 25.00% 130-8.33% 120 0.00% Return on Short Sale 110 8.33% Gain or Loss on Price 7000.00 100 16.67% Dividends Paid 0.00 90 25.00% Net Income 7000.00 80 33.33% Return on Investment 29.17% 70 41.67% Margin Positions Margin Based on Ending Price 111.76% Price for Margin Call 144.00 A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22...
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This note was uploaded on 10/28/2009 for the course MBA MBA608 taught by Professor Martin during the Spring '09 term at Beirut Arab University.

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chapter3shortsale_i - 24000.00 St Price Investment...

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