At the start of 2021, Eliza sold short 1,500 Sun Airlines shares at $17.30 per share. In April, a dividend of $0.60 per share was paid to shareholders. Eliza covered her short position when the share price was $18.95 per share and also paying $0.70 per share in commission fees for each transaction.
a) Describe the meaning to sell a security short. [4 marks]
b) What is the total net profit/loss as a dollar amount for Eliza from this investment strategy? [2 marks]