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Assume you short-sell 200 shares of Exxon mobile (XOM) for $55 per share. Two months from today, XOM pays a dividend of $0.87 per share.

Assume you short-sell 200 shares of Exxon mobile (XOM) for $55 per share. Two months from today, XOM pays a dividend of $0.87 per share. Three months from today you close out your position when XOM is trading for $60 per share. Set up the calculations needed to determine your overall profit or loss. Note that signs are important.

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