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Question
Five months ago, you purchased 400 shares of stock on margin. The initial margin requirement on your account is 60 percent and the maintenance margin is 30 percent. The call money rate is 4.8 percent and you pay 1.85 percent above that rate. The purchase price was $16 a share. Today, you sold these shares for $18.00 each. What is your annualized rate of return?A. 26.15 percent
B. 33.35 percent
C. 42.77 percent
D. 56.87 percent
E. 64.64 percent
Answer
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