Assume You Sell Short 100 Shares of Common Stock at $45

Assume you sell short 100 shares of common stock at $45 per share,with initial margin at 50%.What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period,and you did not remove any money from the account before making the offsetting transaction.

A) 20.03%
B) 25.67%
C) 22.22%
D) 77.46%
E) none of the above