FINANCIAL ANALYSIS

Financial Analysis



Financial Analysis

Question 1

(a) The discount might be explained (at least in this part) by short sale constraints. If it is easier to the short the HOLDR than the underlying stocks, then one might expect the HOLDR to trade at discount.

Based on the precede information, this statement can be termed as true. The discount is potentially triggered by short sale constraint and it is true that HOLDR might get traded in discount, if it is convenient to short it tan the underlying stocks. The reason for this is that the mechanics of short are complicated as compared to ...