A. what is the annualized rate of return if you cover the position after 90 days ?

B. if maintenance matgin 30% what is margin call and how much do you have to deposit in your account to come up to mark?

show formulas and calculations

You sell short 400 shares of Microsoft which are currently selling at $50 per share. You post the 50% margin required on the short sale. Margin account pays no interest. You earn no interest on the funds in your margin account. Microsoft is selling at $47 after 90 days and you cover your short? Assume that the stock has paid a dividend of $3 per share and you paid a commission of $0.50 per share to the broker