An investor sells short 100 shares of stock at 100 per share The margin requirement is 50
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Question:
An investor sells short 100 shares of stock at 100 per share The margin requirement is 50 of the short sale
- If the investor covers her short sale when the stock price declines to 70 per share, what is the return on the short sale?
- What is the return if there is no margin requirement?
- If the investor covers her short sale when the stock price increases to 130 per share, what is the return on the short sale?
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