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Imagine you buy 1,000 shares of ABC on 40% margin when the stock is trading at $30. The call money rate is 8% with a
Imagine you buy 1,000 shares of ABC on 40% margin when the stock is trading at $30. The call money rate is 8% with a 3% spread. Six month later, you sell all your shares when the stock is trading at $31 dollars (with no dividends paid). What is your annualized total return?
A. 0.60%
B. -4.22%
C. 17.36%
D. 6.78%
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