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Calculating short position cash flows and returns. Assume that an investor short - sells 5 0 0 shares of stock at a price of $
Calculating short position cash flows and returns. Assume that an investor shortsells shares of stock at a price of $ a share, making a percent margin deposit. A year later, she repurchases the borrowed shares at $ a share.
a How much of her money did the shortseller have to put up to make this transaction?
b How much money did the investor make, or lose, on this transaction?
c What rate of return did she make on her invested capital see part a
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