National Grid PLC. (ticker: NGG) is currently trading at $59.11 per share. But you are bearish on the stock and believe that the price will fall to $56.32 in two weeks. You decide to short sell 100 shares. Your broker will charge 1.7% interest for lending shares to you, independent of the length of the loan. You are required to pay the interest when you close your short sale position. What is your expected investment outcome? A. $132.00 profit B. $178.51 profit C. $196.25 profit D. $210.00 profit E. $379.49 profit

National Grid PLC. (ticker: NGG) is currently trading at $59.11 per share. But you are bearish on the stock and believe that the price will fall to $56.32 in two weeks. You decide to short sell 100 shares. Your broker will charge 1.7% interest for lending shares to you, independent of the length of the loan. You are required to pay the interest when you close your short sale position. What is your expected investment outcome? A. $132.00 profit B. $178.51 profit C. $196.25 profit D. $210.00 profit E. $379.49 profit

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter26: Mergers And Corporate Control

Section: Chapter Questions

Problem 7MC

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