Problemassume you sell short 100 shares of common stock at, Ask an Expert

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Problem:

Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. Please provide all calculation and methods to solve it.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146951

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