An increasing stock price may cause some investors who have sold short to receive margin calls and buy back their shares, thus covering those short positions. Their buying may cause the stock in increase more and impact other short sellers. This phenomenon is known as ___________ .

• A. a short squeeze
• B. outing the shorts
• C. a momentum play
• D. a continued covering

What is the return on investment for an investor who buys 100 shares at $50 with a 60% initial margin and the stock price increases by 20% (i.e. increase to $60)?

• A. 20.00%
• B. 10.00%
• C. 16.67%
• D. 33.33%