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Suppose Sam owns Netflix and he decides to short this stock for $90.00. In February 2022, he covers his position at $100.00. What does it

Suppose Sam owns Netflix and he decides to short this stock for $90.00. In February 2022, he covers his position at $100.00.

  1. What does it mean to sell a stock short?

  2. If the margin requirement is 50%, what is the dollar value return Sam is earning (or

    losing) on his investment)?

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