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Suppose you have $50,000 in cash in your brokerage account. You then short sell 20 shares of TSLA, currently priced at $1500 per share. What
Suppose you have $50,000 in cash in your brokerage account. You then short sell 20 shares of TSLA, currently priced at $1500 per share. What is the dollar gain or loss on your portfolio, over the next year, if TSLA falls to $1250 per share? What would have been the gain or loss on your portfolio had you bought (using margin) 50 shares of TSLA instead? For both parts of the question, assume that the interest rate for borrowing and lending is 1% per year.
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