Question: One share Microsoft Corp is currently trading at $ 1 0 0 . You believe that the price of the stock, which does not pay

One share Microsoft Corp is currently trading at $100. You believe that the price of the stock, which does not pay dividends, will increase over the next year. The continuously compounded risk-free rate is 1%. Calculate your profit in one year by shorting selling one share of Microsoft Corp. Assume the price goes up to $120 in one year.
Hint: You will hold a long position of the stock.

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