Using the following assumptions, calculate the rate of return on a margin transaction for an investor who purchases the stock and the stock price at which the investor who shorts the stock will receive a margin call. Market Price Per Share: $25 Number of Shares Purchased: 1000 Holding Period: 1 year Ending Share Price: $22 Initial Margin Requirement: 50% Maintenance margin: 25% Transaction and borrowing costs: $0 The company pays no dividends What of the following choices is closest to the correct answer The margin transaction return and margin call are: Margin Transaction ReturnMargin Call（）①A. -24.00% $16.67 ②B. -12.00% $16.67 ③C. -24.00% $30.00
A. ①
B. ②
C. ③