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You sell short 500 shares of Microsoft that are currently selling at $50 per share. You post the 50% margin required on the short sale.

You sell short 500 shares of Microsoft that are currently selling at $50 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $47? (Ignore any dividends.)

PLEASE SHOW ALL WORK

A. 15%

B. 6.67%

C. 12%

D. 20%

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