Multiple Choice
Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $25 per 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) 20.47%
B) 25.63%
C) 57.14%
D) 77.23%
Correct Answer:
Verified
Correct Answer:
Verified
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