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Last year you sold short 350 shares of stock selling at $70 per share. Six months...

Last year you sold short 350 shares of stock selling at $70 per share. Six months later the stock had fallen to $55 per share. Over the 6-month period the company paid out two dividends of $1.25 per share. Your total commission cost for buying and selling the shares came to $150. Determine your profit or loss from this transaction.

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Answer #1

The solution to the given question is provided below:

Profit from the transaction=350*70-350*2*1.25-150-350*55=$4,225.00

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