Assume That an Investor Lends 100 Shares of Jiffy,Inc

Multiple Choice

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