You just sold short 600 shares of SkyCircuit Ltd., a tech st…
You just sold short 600 shares of SkyCircuit Ltd., a tech startup, at a price of $88 per share. One year later, you cover your short position when the price drops to $77 per share. During the year, the company paid $0.60 per share in dividends. Assume an initial margin requirement of 55%. What is your percentage rate of return on this short-sale investment?Note: You may choose one of the following options to submit your answers:Type your complete answer directly in the answer field on Blackboard, ORType only the final answer in the Blackboard field, write “see answer on scratch paper,” and show your handwritten work to the camera before proceeding to the next question.