You sell short 390 shares of Microsoft which are currently selling at $37 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 one year if Microsoft is selling at $35? (Ignore any dividends)

Answer rating: 100% (QA)

To calculate the rate of return on a short sale we need to consider the gain or loss on the sale as ... View the full answer