Question

On january 1, you sold short one round lot (that is, 100 shares) of lowe'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.

a. what is the proceeds from the short sale (net of commission)?

Answer 1

Here you go,

Proceeds from the short sale:

Sales process = $2,100 ($21 * 100 shares)

Less: Commission = $50 ($0.50 * 100 shares)

Proceeds = $2,050

Therefore, proceeds from sale are $2,050 (net of commission).