What is the net profit for citron if the stock price does

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Question: Suppose Citron Capital built a short position of 1,000 shares of a stock when its price was $50. Citron expected that the share of the stock would drop to $20 dollar per share in 12 months. Suppose Citron needed to post collateral whose value equals to 102% of the borrowed position, and the lending fee of the stock was $0.02 per share per calendar day.

What is the net profit for Citron if the stock price does drop to $20?

Reference no: EM133326339

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