Posted by **Mwende** on Friday, March 8, 2013 at 2:45pm.

You decide to sell short 100 shares of Charlotte Farms when it is selling at its yearly high of $56. Your broker tells you that your margin requirement is 45% and that the commission on the purchase is $155. While you are short the stock, Charlotte pays a $2.50 per share dividend. At the end of 1 year, you buy 100 shares of Charlotte at $45 to close out your position and are charged a commission of $145 and 8% interest on the money borrowed. What is your rate of return on the investment?

## Answer This Question

## Related Questions

- Finance - Suppose you short-sell 100 shares of a stock at $55 with a commission ...
- Personal Income Tax - Here is my homework problem that I need some help with: "A...
- Finance - Suppose that you sell short 100 shares, now selling at $70 per share. ...
- maths - by selling at 77% some 9/4%shares of face value 100 and investing the ...
- finance - 11-10. A U.S. firm wants to raise $15 million by selling 1 million ...
- Finance - A U.S. firm wants to raise $15 million by selling 1 million shares at ...
- Math - A real estate agent to sell a large apartment complex according to the ...
- Stocks - An investor purchased 700 shares of stock at $54.03 per share. She ...
- Phenoix - teresa buys 100 shares of XYZ sock on margin at $20 per share. If the ...
- math - By selling at Rs 77, some 2 1/4% shares of face-value Rs 100 and ...

More Related Questions