Question
You sell short 100 shares of Microsoft that are currently selling at $230 per share. You post the 60% margin (cash buffer) required on the
You sell short 100 shares of Microsoft that are currently selling at $230 per share. You post the 60% margin (cash buffer) required on the short sale. If the broker charges you interest of 5%, what will be your rate of return after 1 year if Microsoft is selling at $226? (Ignore any dividends.)
| -5.43% | ||
| 4.32% | ||
| 3.12% | ||
| -6% |
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Investments An Introduction
Authors: Herbert B. Mayo
13th Edition
0357127951, 978-0357127957
