Exhibit 4.5 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 23

Multiple Choice

Exhibit 4.5
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You decide to sell 100 shares of Topgun Enterprises Inc. short when it is selling at its yearly high of $42.25. Your broker tells you that your margin requirement is 60 percent and that the commission on the sale is $20. While you are short, Topgun pays a $0.85 per share dividend. At the end of one year you buy your Topgun shares (cover your short sale) at $44 and are charged a commission of $20 and a 5 percent interest rate.
-Refer to Exhibit 4.5. What is your dollar return on the investment?

• A)$384.50
• B)$432.88
• C)-$432.88
• D)-$384.50
• E)-$950.55

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Definitions:

Public Self-consciousness

is a personality trait that makes individuals more aware of how they are perceived by others, leading them to modify their behavior in social situations.

Cosmetics

products applied to the body to improve or change the appearance.

Clothing

Fabric or material worn on the body to protect, adorn, or communicate social, cultural, or personal identity.

Older

Pertaining to someone or something with a greater age; typically implies more advanced years in the context of people or the longevity of objects.