You purchase $1,000 of IBM and $1,000 of Hershey (HSY) at the end of each quarter from
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Selling short like buying stock involves cash inflows and outflows The initial cash outflow is the margin requirement of 50 In each of the two years there is a cash outflow of 2 to cover the dividend payment When the stock is repurchased for 35 and returned to the broker the investor makes 15 and the initial 50 margin deposit is returned Thus the cash inflow ...View the full answer
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