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Molly shorts 100 shares of a non-dividend-paying stock at the initial stock price of $60 per share. She invests the proceeds at the continuously compounded
Molly shorts 100 shares of a non-dividend-paying stock at the initial stock price of $60 per share. She invests the proceeds at the continuously compounded risk-free interest rate of 0.05 in a savings account. She does not make any subsequent withdrawals from or deposits to this account until the short sale is closed. When Molly closes the sort sale, six months later, the stock price is $55. Does she have enough money in the savings account to be able to close the short sale without using additional funds?
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