You short sell 300 shares of Microsoft currently selling at $30. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27 ? Show work
Suppose you pay $9400 for a $10000 treasury bill maturing in 6 months. What is the effective annual rate of return on this investment.
You short sell 500 shares of Brooklyn trading co., now selling for $75 pershare. What is your maximum possible gain?
Suppose you pay $9400 for a $10000 treasury bill maturing in 6 months. What is the effective annual rate of return on this investment.