3. Stock transactions: Short selling Suppose Formura's stock is currently trading at $60 per share, but Edison analyzed the company's financial reports and believes that the stock is overpriced. In response to this, he calls his broker to take a short position on 200 shares of Formura's stock. The sale of the stock resulted in proceeds of $ for Edison. Over the next three months, the price of Formura's stock decreased, and Edison placed an order through his brokerage to purchase 200 shares to offset his short position. If the price decreased to $50, then Edison paid for the shares. If Formura pays a quarterly dividend of $1 per share and the transaction cost charged by the broker is 1 percent of the proceeds on each transaction, Edison stands to earn $ from his short position