An Investor Sells 100 Shares Short at $43

question 43

Essay

An investor sells 100 shares short at $43. The sale requires a margin deposit equal to 60 percent of the proceeds of the sale. The company paid a cash dividend of $2 per share. If the investor closed the position at $36, what was the percentage earned or lost on the investment?

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Definitions:

Childhood Disease

Diseases that are primarily seen or diagnosed in children, ranging from common illnesses like chickenpox to more serious conditions such as juvenile diabetes.

Means-End

A concept in problem-solving that focuses on identifying a specific goal (end) and the methods or actions (means) required to achieve it.

Professional Standards

Established norms and criteria within a profession that guide the ethical and technical performance of its members.

Balancing Interests

The act of negotiating or managing differing needs, desires, or demands to reach a compromise or harmonious solution.