What is the net profit for citron if the stock price increas


Problem

Suppose Citron Capital built a short position of 1,000 shares of a stock when its price was $50. Citron expected that the share of the stock would drop to $20 dollar per share in 12 months. Suppose Citron needed to post collateral whose value equals to 102% of the borrowed position, and the lending fee of the stock was $0.02 per share per calendar day. What is the net profit for Citron if the stock price increases to $100?

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Finance Basics: What is the net profit for citron if the stock price increas
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