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John Q. Investor takes a short position on 3,000 shares of Apple (AAPL), selling at $83.01 per share on January 20. Dividends are estimated at
John Q. Investor takes a short position on 3,000 shares of Apple (AAPL), selling at $83.01 per share on January 20. Dividends are estimated at $4 per year paid quarterly, and the last Ex-date was January 7. JQ's broker charges him $400 for the loan of the shares every six months. JQ covers his position on July 19 at $98.63 At the time of the initial sell JQ's broker must deposit to JQ's margin account a total of $ $ and JQ's initial investment is $ JQ's profit on this position is $ the holding period rate of return is % The rate of return on the underlying asset is %
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