Johnny buys 100 shares of ABC stock for $70 per shares on 2/1/2008. He then borrows 100 shares of ABC stock from his broker and sells the stock for $90 per share on 3/1/2008. On 3/18/2008, Johnny buys 100 shares of ABC stock at $75 per share. He pays $7,500 for the stock and returns the stock to the broker. The short sale is closed.

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Stepbystep explanation The gain realized on the short sale is the difference between the amoun... View the full answer