An investor sells 100 shares short at $33. The sale requires a margin deposit equal to 60 percent of the proceeds of the sale. The interest on borrowed funds is 3.5% per annum. (Position closes at the end of the year.)

A) If the investor closes the position at $40, what was the percentage earned or lost on the investment?

B) If the position had been closed when the price of the stock was $21, what would have been the percent earned or lost on the position?