Assume you sell short 100 shares of common stock at $30 per share,with initial margin at 50%.What would be your rate of return if you repurchase the stock at $35/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) -33.33%
B) -25.63%
C) -57.14%
D) -77.23%
E) none of the above
Correct Answer:
Verified
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