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Tina sells short 1,200 shares of Alpha Inc. that are currently selling at $54 per share. She posts the 50% margin required on the short
Tina sells short 1,200 shares of Alpha Inc. that are currently selling at $54 per share. She posts the 50% margin required on the short sale. Her broker requires a 30% maintenance margin. The firm pays no dividends. Tina earns no interest on the funds in her margin account. What is the rate of return on the investment if the price of Alpha stock changes from $54 to $47? A. 25.93% B. 27.66% C. 12.96% D.-12.96%
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