On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $25.50 per share. On March 1, a dividend of $2.30 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $21.50 per share.
You paid 25 cents per share in commissions for each transaction.
What is the proceeds from the short sale (net of commission)?
Proceeds from the short sale $__________
What is the dividend payment?
Dividend payment $ 230
What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $21.50 per share?
Total cost including commission $_________
What is the net gain from your transaction? Net gain $_____________