What is profit for the short transaction

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Reference no: EM132771889

Problem 1: After researching a software company's common stock, Sarah Jackson is convinced that the stock is overpriced. She contacts her account executive and arranges to sell short 200 shares. At the time of the sale, a share of common stock had a value of $35. Six months later, the stocks was selling for $23 a share and Sarah instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $120. What is her profit for this short transaction?

Reference no: EM132771889

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