An investor enters a short selling arrangement to borrow 700 shares and sell them for...
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An investor enters a short selling arrangement to borrow 700 shares and sell them for $150 per share. The dividend for these stocks is $0.50 per share and then three months later, the investor buys them for $125 per share to close the position. What is the profit for the investor? What would the profit have been if there was no dividend? What would have happened if the investor was wrong and the stock instead went up to $160 per share?
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