Exhibit 4.5 Use the Information Below for the Following Problem(S)

question 41

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:

Mexican Nationals

Citizens of Mexico, a country in southern North America, with a rich cultural heritage and diverse landscapes.

Race-specific Policies

Strategies and laws designed to address issues uniquely affecting individuals of certain racial groups.

Affirmative Action

Policies or measures aimed at increasing the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded.

William Julius Wilson

An influential American sociologist known for his research and theories on race, class, and inequality in the United States.