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Assume ABC stock was traded at $50 last year and ABC stock is traded at $59 today. ABC stock paid $1 dividends per share throughout
Assume ABC stock was traded at $50 last year and ABC stock is traded at $59 today. ABC stock paid $1 dividends per share throughout the year. Please answer the following questions.
If you sold short 100 shares of ABC stock last year with a 50% initial margin requirement, what is your holding period return?
Ans: Use formula HPR= end e -beg e- div payment/ initial margin= -40%. But how?
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