Ritesh does not own any shares of MMM company so he sells 100 shares short. His execution price for the sale is $51. His broker gives him the following terms on the short sale: Margin Requirement: 60% The stock subsequently fell to $42 and he decided to cover his position. During the time he was short the MMM company paid a cash dividend of $1 per share. What was his percentage earned (or lost) for this transaction? -22.44% -26.14% -16.67% +22.44% +16.67% +26.14%

Ritesh does not own any shares of MMM company so he sells 100 shares short. His execution price for the sale is $51. His broker gives him the following terms on the short sale: Margin Requirement: 60% The stock subsequently fell to $42 and he decided to cover his position. During the time he was short the MMM company paid a cash dividend of $1 per share. What was his percentage earned (or lost) for this transaction? -22.44% -26.14% -16.67% +22.44% +16.67% +26.14%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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