Question: (Hard) Your broker's initial margin requirement is 65%, the maintenance margin requirement is 40%, and the broker call rate (interest rate) is 2.3% per year.

(Hard) Your broker's initial margin requirement is 65%, the maintenance margin

(Hard) Your broker's initial margin requirement is 65%, the maintenance margin requirement is 40%, and the broker call rate (interest rate) is 2.3% per year. You buy 500 shares of stock on margin at $27.24 per share and close your position six months later at $30.22 per share. If the stock paid a quarterly dividend of $0.55 per share, what is your rate of return? (Note that 6 months = 2 quarters) OA) 22.42% B) 20.41% C) 16.96% D) 18.41% OE) 24.96%

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