Question

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $27.70 per share. On March 1, a dividend of $3.30 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $22.00 per share. You paid 25 cents per share in commissions for each transaction. a. What is the proceeds from the short sale (net of commission)

Answer 1

Answer: $‭2,745‬

Step-by-step explanation:

Proceeds from short sale net of commission is ;

= Number of shares sold * ( Market price of shares - Commission paid)

= 100 * (27.70 - 0.25)

= $‭2,745‬