On Sep 10, 2020, Hindenburg Research (led by Nate Anderson, a former FactSet rep for Drexel) released a report critical of Nikola Corp (NKLA). Assuming that Hindenburg went short NKLA at the closing price on Sep 1, 2020 with an initial margin of 20% and covered their short position at the closing price on Sep 30, 2020, what approximately was their ROI on the shortsale ignoring transaction costs?

Answer rating: 100% (QA)

To calculate the Return on Investment ROI for the short sale of Nikola Corp NKLA by Hindenburg Resea... View the full answer