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Gregory sells a stock short at a price P and buys it back one year later for .9P. The required margin is 50% and interest
Gregory sells a stock short at a price P and buys it back one year later for .9P. The required margin is 50% and interest on the margin deposit is pain at 5%. Gregory's yield for the year is 14%. Dividends are paid out at the end of the year. Find the amount of these dividends as a percent of Gregory's investment.
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