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You short $12000 worth of stock. The initial margin deposit is 1/3. When you cover your short position, the shares are worth a total of
You short $12000 worth of stock. The initial margin deposit is 1/3. When you cover your short position, the shares are worth a total of $11400. There were no dividends paid during the shorting period. What is the percentage return to YOUR EQUITY? Go out three decimal places; for example, write -25.5% as -.255. Afterward, think about the relationship between the percentage return to the stock and the percentage return to your equity position.
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