A short seller borrowed a share of common stock from her broker and sold it at $200.
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Question:
A short seller borrowed a share of common stock from her broker and sold it at $200. Then stock paid a $2 dividend. Finally, the short seller closed out her short position by buying back a share of the same common stock at $180 and returning it to her broker.
What is the short seller's profit in this short sale transaction, assuming zero interest rate?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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