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1 a Andrew short sells 300 shares of XYZ stock which has a bid price (selling price) of $15.17 and ask price (buying price) of
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a Andrew short sells 300 shares of XYZ stock which has a bid price (selling price) of $15.17 and ask price (buying price) of $17.65. His broker charges him a 0.4% commission to take on the short sale. Before Andrew covers his position 6 months later when the bid price is $14.47 and the ask price is $15.39, he invests for 6 months. The commission to close the short sale is $23. XYZ stock did not pay any dividends in those six months and continuous compounded interest rate is 6%. Andrew earns in this short sale. (Please use two decimal places)Step by Step Solution
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