13. Required information

You sell 400 shares short at a price of $41. The initial margin is 50%, the maintenance margin is 30%, and brokerage costs are $10 per transaction.

Suppose that after holding the short position for one year, the share price has fallen to $37. During the holding period firm B paid a dividend of $1.00. What holding period return did you earn?

• 16.55%

• 14.39%

• 11.37%

• 12.95%