Question

on january 1, you sold short one round lot (that is, 100 shares) of snow’s stock at $21 per share. on march 1, a dividend of $3 per share was paid. on april 1, you covered the short sale by buying the stock at a price of $15 per share. you paid 50 cents per share in commissions for each transaction.

Answer 1

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on january 1, you sold short one round lot (that is, 100 shares) of snow’s stock at $21 per share. on march 1, a dividend of $3 per share was paid. on april 1, you covered the short sale by buying the stock at a price of $15 per share. you paid 50 cents per share in commissions for each transaction.