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Suppose that investors cumulatively short-sell 6 million shares of a stock and the share price appreciates from $200 to $1100. In the meantime, the stock
Suppose that investors cumulatively short-sell 6 million shares of a stock and the share price appreciates from $200 to $1100. In the meantime, the stock pays a dividend of $20 per share. What is the total amount of loss that the short sellers suffer from their position? You can ignore shorting fees and assume all interest rates are zero). A. $5.5 billion B. $7.3 billion C. $6.1 billion O D. $4.3 billion
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