what is the margin strategy?

You have been watching Company A and believe that the share price should increase over the next two months. Assuming that your broker charges a borrowing rate of 7% a year, requires an initial margin of 60%, maintenance margin of 30% and an initial assumed exposure of 1000 shares, calculate: Time Today Two months time Bid 28.25 31.30 Ask 29.38 Question 1 The return on then margin strategy is closest to: A) 13.08% B) 11.71% C) 6.69% D) 8.06%