An investor sells 100 shares short at $43. The sale requires a margin deposit equal to 60 percent of the proceeds of the sale. The interest on borrowed funds is 5.5% per annum. 

A.) If the investor closes the position at $49, what was the percentage eared or lost on the investment?

B.) If the position had been closed when the price of the stock was $27, what would have been the percent earned or lost on the position?

Answer rating: 100% (QA)

To solve these problems lets break down the scenarios step by step Given 100 shares short at 43 Marg... View the full answer