You purchase 13,099 shares of ABC on March 1 at a price of $20.65 per share. ABC declares a dividend of $0.20 per share on March 31. Simultaneously, on March 1, you sell SHORT 4,644 shares of XYZ at a price of $40.14 per share. XYZ declares a dividend of $0.33 per share on April 30. On May 31, ABC is down 7% and XYZ is up 10% from their respective March 1 values. Assume that (A) your account's equity on March 1 is $300,000 all in cash before placing any trades and (B) there are no trading commissions. All dividends received are kept as cash in your account, which is also used to pay any dividends accrued. The broker pays interest of 0.5% on any cash balances, charges interest of 2% on any margin loans, assesses a fee of 0.25% on borrowed securities, and allows trading with a 50% margin requirement, which you intend to maximize. All rates are expressed as effective annual, all transactions take place in the same calendar year, and you can assume (A) a generic 30-day month and (B) no margin recalculation before May 31. What will be the equity (net asset value) of your account on May 31?

Question 21 options:

	$263,164
	$269,743
	$276,322
	$282,901
	$289,480