Suppose that you just short sold 100 shares of ABC stock for…

Suppose that you just short sold 100 shares of ABC stock for $45 per share. The initial margin requirement is 60%, which you cover by pledging T-bills as collateral. If the price of the stock falls to $38 per share, what return did you earn? Ignore the interest earned on T-bills.

Math Question 6: Suppose that USD/sterling spot rate is 1.55…

Math Question 6: Suppose that USD/sterling spot rate is 1.558, the 90-day forward rate is 1.5556, and the 180-day forward rate is 1.5518. Identify the arbitrage opportunities in the following situations:(a) A 180-day European call option to buy £1 for $1.52 costs 2 cents. (b) A 90-day European put option to sell £1 for $1.59 costs 2 cents. Ignore the time value of money in your computations. Clearly state the strategy for each part and calculate the arbitrage profit. Once completed, select “True” below.

Math Question 1: ABC holdings plans to pay a $1.10 dividend…

Math Question 1: ABC holdings plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. ABC’s share price today is $45.60 and the continuously compounded interest rate is 8.4%. What is the forward price (in dollars) for the delivery of ABC stock immediately after the second dividend?