3. If you sell 100 shares short at $40 on 60% margin and buy them back...

Question

Question

business finance

Answer 1

Answer #1

number of share = 100

selling price = 40- 2% commission= 39.2

Buy at 36 + 2% = 36.72

profit before commission = (39.2-36.72)*100= 248

rate of return 248/3600 *100 = 6.88

Answer 2

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