Problem:
Assume you sold short 200 shares of GAP at $30 per share. What was your profit and rate of return, if after one year, GAP paid $.25 per share in dividends and you covered your short position when the price was $25 per share? Assume a 100% initial margin requirement.
Account at the time you sell the stock short: Assets and Liabilities
Account one year later: Assets and Liabilities