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Matt short sold 600 shares of stock at $10.50 a share. The initial margin is 80 percent and the maintenance margin is 50 percent. The

Matt short sold 600 shares of stock at $10.50 a share. The initial margin is 80 percent and the maintenance margin is 50 percent. The stock is currently selling for $6.80 a share. What is Matt's account equity at this time? What is his rate of return? Ignore margin interest.

$3,070; 25.00%

$7,260; 35.05%

$7,260; 44.05%

$9,950; -35.24%

$11,510; -25%

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