Interest on funds in margin account, Finance Basics

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Interest on funds in margin account

You sell short 300 shares of Microsoft which are currently selling at $30 for each share. You post the 50% margin required on the short sale. If you earn no interest on funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27? (Ignore any dividends.)

A. 6.67%

B. 15%

C. 10%

D. 20%

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Finance Basics: Interest on funds in margin account

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Interest on funds in margin account

Reference No:- TGS0875715

Recent Questions Asked Finance Basics

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