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Eagleway built a short position of 1,000 shares of stock when the underlying stock price was $50 a share. Eagleway expected the stock price would
Eagleway built a short position of 1,000 shares of stock when the underlying stock price was $50 a share. Eagleway expected the stock price would drop to $20 a share in 12 months. Eagleway needed to put up collateral with value equal to 102% of the borrowed position. The lending fee is $0.02 a share per calendar day.
If Eagleway is wrong and instead the stock price rises to $100, what is their net profit?
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