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:

Gender

A range of characteristics pertaining to, and differentiating between, masculinity and femininity, often influenced by social and cultural factors.

Clinical Trial

A research study conducted with human volunteers designed to evaluate the safety and efficacy of a medical treatment or intervention.

Well-Shuffled Deck

A deck of cards thoroughly mixed to ensure that the order of cards is random.

Club

An organization formed by people with a common interest, particularly in sports or recreational activities.