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You borrowed 100 shares of IBM from your broker and sold them at the price of $145 per share. You put in $8700 in cash
You borrowed 100 shares of IBM from your broker and sold them at the price of $145 per share. You put in $8700 in cash buffer. The broker charges an interest rate of 10% per year on the stock loan. One year later, you bought back the 100 Intel shares to return to your broker. At that time, the price per share is $138. The return of this trade is 28%8.6%15%10%
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