A speculator sells a stock short for

A speculator sells a stock short for - What is the...

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A speculator sells a stock short for $50 a share. The company pays a $2 annual cash dividend. After a year has passed, the seller covers the short position at $42.
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Unformatted text preview: What is the percentage return on the position? ($50 - $42 - $2) / $50 x 100% = $6 / $50 x 100% = 12% return...
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This note was uploaded on 04/01/2012 for the course FINC 354 taught by Professor Gibbons-cobb during the Spring '12 term at Columbia College.

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