posted by Justin .
Suppose you short-sell 100 shares of a stock at $55 with a commission charge of 0.5%. You also payu commission charge for purchasing the stock to cover the short-sale. What is your profit if you close the short-sale at $54?
For example, let us suppose that an investor wants to accumulate $1,000 in five years and that the interest rate is 5%. How much does he/she need to set aside annually in order to accumulate $1,000 at the end of five years? (Sinking fund calculation)