If you short-sell a stock and it pays a dividend while your short sale is open, then O A. You are unaffected (i.e., you do not receive nor do you pay the dividend) O B. You have to pay the dividend to the lender O. You receive the dividend

If you short-sell a stock and it pays a dividend while your short sale is open, then O A. You are unaffected (i.e., you do not receive nor do you pay the dividend) O B. You have to pay the dividend to the lender O. You receive the dividend

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 3MC

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Question

If you short-sell a stock and it pays a dividend while your short sale is open, then
O A. You are unaffected (i.e., you do not receive nor do you pay the dividend)
B. You have to pay the dividend to the lender
OC. You receive the dividend

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