You believe that the stock of MoabBikes will soon fall from its current price of $25 per share.You short 1,000 shares with your broker who has a 50% margin requirement.The price falls to $15 per share,but not before it pays a $5 dividend per share.Your commissions and other charges totaled $50.What was your total profit?
A)$5
B)$2,450
C)$2,500
D)$4,950
E)$9,950

Question

Quizplus · Accepted Answer

The Answer of You believe that the stock of MoabBikes will soon fall from its current price of $25 per share.You short 1,000 shares with your broker who has a 50% margin requirement.The price falls to $15 per share,but not before it pays a $5 dividend per share.Your commissions and other charges totaled $50.What was your total profit?
A)$5
B)$2,450
C)$2,500
D)$4,950
E)$9,950

You Believe That the Stock of MoabBikes Will Soon Fall