Suppose that the american congress passes

Assignment Help Finance Basics
Reference no: EM132185054

Suppose that the american congress passes a bill that prohibits the short selling of stocks, which makes impossible for investors to have profit when stock prices go down. however, AC doesnt impose any restrictions on optiontrading. what is your advice to the investors who want to be short in a particular stock? in other words, provide a strategy on how to accomplish the equivalence of a short sell by using options and borrowed capital. construct a payoff table of teh strategy to back of your point. Please be detail.

Reference no: EM132185054

Questions Cloud

Which of the following statements is false : Because diversification improves with the number of stocks held in a portfolio, an efficient portfolio should be a large portfolio containing many different st
First step toward defining the marketing problem : The first step toward defining the marketing problem correctly is to meet with the manager(s) who are requesting marketing research.
Determine the expected value of the net present : Determine the expected value of the net present value for the standard-size restaurants. Use the data in Figure 2. To get the expected value
What is the triple bottom line : What is the triple bottom line (3Ps)? How has the shift to these ideas changed the practices in both manufacturing and service industries?
Suppose that the american congress passes : Suppose that the american congress passes a bill that prohibits the short selling of stocks, which makes impossible for investors to have
What are potential barriers to successful training session : What are the potential barriers to a successful training session? Is patient satisfaction with healthcare providers a legitimate measure of the quality of care?
Create a continuous internal control process : Using the framework issued by COSO (found in your textbook, or click here to follow the link to the Web site), discuss the components and how they fit together.
Units less than breakeven : Randys tireland makes a product that sells for $60 per unit and has $50 per unit in variable costs. Annual fixed costs are $24,000
Repositioning hotel within established market areas : What are the reasons for repositioning a hotel within established market areas?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Data resource for marketing researchers

The Web has become an extremely useful data resource for marketing researchers. The purpose of this assignment is to allow you to gain

  What is the cash flow to stockholders during 2010

What is the operating cash flow during 2010? (Do not include the dollar sign.

  What is the cost of equity for abc company

1. TAMU Inc. is for sale and there is a price tag of $225,000. Your company, ABC, who is considering the purchase, has a beta of 1.5, the market is expected to have a 20% return and the risk-free rate is 5%. The forecasted free cash flows for the nex..

  Interest rates on instruments of comparable risk

Briefly explain how interest rates on instruments of comparable risk and maturity will tend to be equalized in a world without capital barriers.

  Discuss the sec requirement for md-a

[Basic concepts] Explain why cash flows are classified into three categories. Discuss the usefulness of each category.

  Firm new balance sheet

Write out the firm's new balance sheet? What is the firm's new stock price?

  Issue of equity and debt

What are the annual cash flows associated with the bond issues? With the common stock issue? What are the key financial characteristics of Winfield relevant to the issuance of debt? How much debt can the company support?

  Total dollar return per share

Today, the stock is worth $34.60 per share. What is the total dollar return per share to date from this investment?

  Assume you are planning to invest 5000 each year for six

assume you are planning to invest 5000 each year for six years and will earn 10 percent per year. determine the future

  Calculate price-to-sales and price-earnings

The following are some key accounting numbers and market values (in thousands) for Target Corporation and Wal-Mart Corporation for 2014 (year ending in 2015) from Yahoo Finance. Calculate price-to-sales, price-earnings (P/E) and price-to-book (P/13..

  What is the cost of capital for adventure outfitter

What is the cost of capital for Adventure Outfitter if the corporation raises money by selling common stock? A) 27.00% B) 18.89% C) 18.33% D) 17.00%

  Metroplex corporation will pay a 304 per share dividend

metroplex corporation will pay a 3.04 per share dividend next year. the company pledges to increase its dividend by 3.8

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd