On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $26.00 per share. On March 1, a dividend of $3.50 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $17.00 per share. You paid 15 cents per share in commissions for each transaction.

a.) What is the proceeds from the short sale (net of commission)?

b.) How much was the dividend payment?

c.) What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $17.00 per share? You have to pay commissions for both the sale and the purchase

d.) What is the net gain on the transaction?

Remember: you have to pay out the dividend.