Assume That You Open a 100-Share Short Position in Jiffy,Inc

question 15

Multiple Choice

Assume that you open a 100-share short position in Jiffy,Inc.common stock at the bid-ask prices of $32.00 - $32.50.When you close your position,the bid-ask prices are $32.50 - $33.00.You pay a commission rate of 0.5%.The market interest rate is 5.0% and the short rebate rate is 3.0%.What is your additional gain or loss due to leasing the asset?

• A) $64.00 loss
• B) $160.00 loss
• C) $96.00 gain
• D) $0

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