Post a New Question

Finance

posted by on .

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?

  • Finance - ,

    i dont know

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question