USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 22

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin requirement is 60 percent and the commission on the sale is $50 and the broker charges 10 percent annual interest. AMF Corporation paid a $0.50 per share dividend while you were short the stock. After one year, you cover your short sale at $35 per share with a $50 commission for the purchase.
-Refer to Exhibit 3.8. What is your total dollar return on this investment?

• A) $1,000
• B) $900
• C) $850
• D) $670
• E) $520

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Definitions:

Progesterone

A steroid hormone that plays a key role in the menstrual cycle, pregnancy, and embryogenesis of humans and other species.

Adrenal Cortex

The outer region of the adrenal glands responsible for producing steroid hormones like cortisol and aldosterone.

Pineal Gland

A small endocrine gland in the brain that produces and regulates some hormones, including melatonin.

Parathyroid Glands

Small endocrine glands in the neck that produce parathyroid hormone (PTH), which regulates calcium levels in the blood and bone metabolism.