Question
You sell short 390 shares of Microsoft which are currently selling at $37 per share. You post the 50% margin required on the short sale.
You sell short 390 shares of Microsoft which are currently selling at $37 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account what will be your rate of return after one year if Microsoft is selling at $35? (Ignore any dividends)
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To calculate the rate of return on a short sale we need to consider the gain or loss on the sale as ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
