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You takes a short position in 100 shares of GBY when the stock sells for $18 per share. You use the proceeds from the short
You takes a short position in 100 shares of GBY when the stock sells for $18 per share. You use the proceeds from the short sale plus $2,000 of your own money to buy BBC for $10 per share.
Calculate your rate of return on a 1-year investment if you close both positions 1 year later when the price of GBY is $21 and the price of BBC is $7.
Keep at least 4 decimal places in all of your calculations.
Answer in decimals, not percent, and round your final answer to 4 decimals, for example 0.1234.
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