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Re: Dr Bill post# 8333

Wednesday, 12/20/2006 3:58:23 PM

Wednesday, December 20, 2006 3:58:23 PM

Post# of 14027
Dr. Bill, of course we're dealing with finite numbers so you're not literally going to have unlimited returns but I just assumed you being a proud graduate of St. Boneventure, you would already know that. wink

You short a stock you get $100 in the account. You cover at$.10 you get to keep $99.90. The results of the transaction is you spent $0.10 and made net $99.90, now how do you figure only a 100% retun from this transaction?