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On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $26.30 per share. On March 1, a dividend
On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $26.30 per share. On March 1, a dividend of $3.10 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $21.20 per share. You paid 35 cents per share in commissions for each transaction. a. What is the proceeds from the short sale (net of commission)? Proceeds from the short sale $ 165 b. What is the dividend payment? Dividend payment $ 310 c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $21.20 per share? Total cost including commission $ 2,155 d. What is the net gain from your transaction? Net gain $ 200
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