A sophisticated investor, B. Graham, sold 600 shares short of Amwell, Inc. at $54 a share....
A sophisticated investor, B. Graham, sold 600 shares short of Amwell, Inc. at $54 a share. The price of the stock subsequently fell to $52 before rising to $73 at which time Graham covered the position (that is, closed the short position). What was the percentage gain or loss on this investment?
Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places. %
Homework Answers
Percentage of Gain/loss = [(Sell Price - Purchase Price) * No. of shares] / [Purchase Price * No. of shares]
= [($54 - $73) * 600] / [$73 * 600]
= -$11,400 / $43,800 = -0.2603, or -26.03%
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