Assume You Sell Short 100 Shares of Common Stock at $30

Question 55
Multiple Choice

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 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) -33.33% B) -25.63% C) -57.14% D) -77.23%