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Can someone explain what is happening and can find me the formulas in this problem? Assume you sell short 100 shares of common stock at
Can someone explain what is happening and can find me the formulas in this problem?
Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $35 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.
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