19 the proceeds from the short sale net of commission

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19. The proceeds from the short sale (net of commission) were: ($14 × 100) – $50 = $1,350 A dividend payment of $200 was withdrawn from the account. Covering the short sale at $9 per share cost you (including commission): $900 + $50 = $950 Therefore, the value of your account is equal to the net profit on the transaction: $1350 – $200 – $950 = $200 Note that your profit ($200) equals (100 shares × profit per share of $2). Your net proceeds per share was: $14 selling price of stock –$ 9 repurchase price of stock –$ 2 dividend per share –$ 1 2 trades × $0.50 commission per share $ 2 20. (d) The broker will sell, at current market price, after the first transaction at $55 or less. 21. (b) 22. (d) 3-7
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