FIN 402 Week 1 DQ 1 For more course tutorials visit www . uophelp . com
conditions . On the other hand , if the company fails to get the permit , the falling stock price will make it a good candidate for a short sale . Dara felt that the following alternatives were open to her :
· Alternative 1 : Invest $ 20,000 in NewestHighTech . com when it goes public .
· Alternative 2 : Buy Casinos International now at $ 54 per share and follow the company closely .
· Alternative 3 : Sell Casinos short at $ 54 in anticipation that the company ’ s fortunes will change for the worse .
· Alternative 4 : Wait to see what happens with the casino permit and then decide whether to buy or short sell the Casinos International stock . Questions a . Evaluate each of these alternatives . On the basis of the limited information presented , recommend the one you feel is best . b . If Casinos International ’ s stock price rises to $ 60 , what will happen under alternatives 2 and 3 ? Evaluate the pros and cons of these outcomes . c . If the stock price drops to $ 45 , what will happen under alternatives 2 and 3 ? Evaluate the pros and cons of these outcomes . ============================================
FIN 402 Week 1 DQ 1 For more course tutorials visit www . uophelp . com
What are capital market instruments ? How are they used ? Which is most important ? Explain your answer .
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