Case

3. The negative stub may mean what the company may need to pay back after they have borrowed the stock, or the possibility of the stock going down making it a contra asset.
4. The Ubid growth wasprobably that way to help offset the loss of the negative stub. Also Ubid may be expecting to have a potential and it is expected to grow
5.
Assets:
Long position in CC: $ 166753700.8
Cash for Shortof Ubid: $ 344839517
Cash collateral for Short: $ 83376850.38
Total Assets: $ 594970068.2
Liabilities and Equity:
Margin loan for CC long position: $ 166753700.8
Short position of Ubid: $255,796,608.90
Equity (cash Elena put in to enter that position)$255,796,608.90
Total 594970068.2

6.Pros if the stock that was sold short does drop price then they can be bought back at the lowerrate making a profit. Cons if the stocks are sold and the price continues to go up and they have to be bought back at a higher price than they were sold. To calculate the next six months is look atthe price that the stock is going to be sold short from and adjust according to future expectations and historical data.
7.Buying long Ubid would be bad if the price dropped and lost money. It would egood if the price goes up to get again. To calculate the six month holding period return, take the average return of the past and add weights according to how the predicted future of Ubid, which isexpected to go higher.
8.If CC goes up it is to have the stock and buy it as it continues to go up. It is the opposite if it goes down. The stock price can go down also which can end up in a result ofa loss. To calculate the holding period return is use the historical data and adjust according to what is expected to happen.
9. I believe the best strategy would be to buy long for Ubid since theprice is expected to go up,
10. Pros investing in a hedge fund can help offset loss and make money if a stock gets bad. Cons is that it is hard to predict if a stock will go up or down, also you are...