Commission on sale
You decide to sell short 100 shares of the MDM corp stock at the price of $55. Your margin deposit is 55%. Commission on sale is 1.5%. Throughout the year the stock pays $2 for each share dividend. Interest on margin debt is 5.0% for each year.
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Compute your initial investment. At the end of one year you close out your short position by buying shares of MDM Corp at $40 for each share. Compute your dollar profit.
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