Question 1: Anna opened a 100-share short position in DEF stock at the bid-ask prices of 41.10-41.20. She later added another 100 shares of DEF to her short position at the bid-ask prices of 36.10-36.20. When she closed her total position of 200 shares, the bid-ask prices were 31.00-31.10. The commission rate is 2.0%. a) What is Anna's profit or loss? b) If the market interest rate is 4% and the short rebate rate is 3%, what is the lender's gain from lending 200 shares to Anna? Ignore profit from commissions and spread Solution