Assume that an investor lends 100 shares of Jiffy, Inc common stock to a short seller. The bid-ask prices are $32.00 - $32.50. When the position is closed, the bid-ask prices are
$32.50 - $33.00. The commission rate is 0.5%.
The market interest rate is 5.0% and the short rebate rate is 3.0%. Calculate the gain or loss to the lender. Assume the lender is not subject to a bid-ask loss or commissions.
A) $164.00 gain
B) $164.00 loss
C) $100.00 gain
D) $100.00 loss
A
Business
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