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A stock is trading at a price of $15 in year 0. In year 1 it pays a dividend of $1 and the price (ex-dividend)
A stock is trading at a price of $15 in year 0. In year 1 it pays a dividend of $1 and the price (ex-dividend) has increased to $16. In year 2 it also pays a dividend of S1, and the price has gone down to $13. In year 0 you short 100 shares which you buy back in year 2, and you trade on a margin where you are required to hold 150% of the value of your short position (you should assume the initial margin and the maintenance margin are both 150% of the value of the short position) in a margin account paying zero interest. What is the return on your short position
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