Assume that you open a 100 share short position in Jiffy, Inc. common stock at the bid-ask price of $32.00 - $32.50. When you close your position the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, calculate your profit or loss on the short investment?
(a) $32.50 gain
(b) $16.25 loss
(c) $132.50 loss
(d) $100.00 gain
Answer: c
Fin 402
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