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A short seller can only trade on an uptick (or zero uptick) and must pay any dividends to the lender of the stock. (c)Factors which Toytown will need to consider include: The geometric mean of a series of returns invest in water shortage is always larger than the arithmetic mean and the difference increases with the volatility of the series. The two partiesshould clearly specify their mutual requirements from the factoringarrangement on a contractual basis. (d)The Baumol model is derived fromthe EOQ model and can be applied in situations where there is aconstant demand for cash or cash disbursements.
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