You short sell 200 shares of stock at $48.23 per share and cover your short positio three months later at $44.66 per share. If your broker's initial margin requirement 55%, and the maintenance margin requirement is 45%, what is your rate of return?

You short sell 200 shares of stock at $48.23 per share and cover your short positio three months later at $44.66 per share. If your broker's initial margin requirement 55%, and the maintenance margin requirement is 45%, what is your rate of return?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3P

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Question

You short sell 200 shares of stock at $48.23 per share and cover your short position
three months later at $44.66 per share. If your broker's initial margin requirement is
65%, and the maintenance margin requirement is 45%, what is your rate of return?
100tne

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