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You are bearish on Telecom and decide to sell short 100 shares at the market price of $50 per share. Suppose the stock doesnt pay
You are bearish on Telecom and decide to sell short 100 shares at the market price of $50 per share.
- Suppose the stock doesnt pay out any dividend during your short sale order. Suppose the amount of cash you use to short sell is what youve found in question 8. What is the rate of return on your short sale if the stock price has dropped to $45? ____%
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