You decided to short 150 shares of AMZN when it was trading at $250 a share....

 

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You decided to short 150 shares of AMZN when it was trading at $250 a share. Suppose that your initial margin is 50%. While you are short the stock, AMZN pays a dividend of $6.50 a share. At the end of one year, you buy 150 shares of AMZN at a price of $200 and close out your position. What is your rate of return on the investment? Express your answer in percent and round it to 2 decimal places. For example, if your answer is 0.25456, then please write down 25.46 (without the percent sign). You decided to short 150 shares of AMZN when it was trading at $250 a share. Suppose that your initial margin is 50%. While you are short the stock, AMZN pays a dividend of $6.50 a share. At the end of one year, you buy 150 shares of AMZN at a price of $200 and close out your position. What is your rate of return on the investment? Express your answer in percent and round it to 2 decimal places. For example, if your answer is 0.25456, then please write down 25.46 (without the percent sign).

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When you short 150 shares of AMZN at 250 per share you receive a cash inflow of 37500 ... View the full answer