Question: please show how to solve this step by step You are bearish on Telecom stock and decide to sell short 100 shares at the current
You are bearish on Telecom stock and decide to sell short 100 shares at the current market price of $30 per share. Assume that you put into your brokerage account 50% of the value of the short position. If you earn no interest on the funds in your margin account. what will be your rate of return after 1 year if Telecom stock is selling at $207 Assume that Telecom stock has paid a year-end dividend of $1 per share. The price of $20 should be interpreted as ex-dividend, that is, prices after the dividend has been paid. 60%73.3%66.67%55.3%
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