Exercise:

An investor borrows $100$ shares of $xYZ$ stock which is currently trading at $35$ per share

and pays a $4\%$ dividend, and sells it

The short seller's has to deposit a margin of $100\%$ value of the short sale.

What will be the profit$/$loss and return of this position if:

the price subsequently declines to $30,$

the price of the stock rises to $40$

Take into account following broker fees and the spanish stock exchange fees: