Question
You sell short 100 shares of Microsoft that are currently selling at $100 per share. You post the 50% margin (cash buffer) required on the
You sell short 100 shares of Microsoft that are currently selling at $100 per share. You post the 50% margin (cash buffer) required on the short sale. If the broker charges you interest of 6%, what will be your rate of return after 1 year if Microsoft is selling at $97? (Ignore any dividends.)
| -6% | ||
| 10% | ||
| 6% | ||
| 3% |
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
