单选题 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: $ 32 Number of Shares Purchased: 1000 Holding Period: 1 year Ending Share Price: $ 34 Initial Margin Requirement: 40% Maintenance margin: 25% Transaction and borrowing costs: $ 0 The company pays no dividends What of the following choices is closest to the correct answer? Margin Return Margin Call Price ①A. 15.6% $17.07 ②B. 6.3% $17.07 ③C. 15.6% $35.80 A．① B．② C．③

【正确答案】 C

【答案解析】Part 1: Calculate Margin Return: Margin Return % =[((Ending Value-Loan Payoff)/Beginning Equity Position)-1]×100 =[(([$34x1000]-[$32×1000x0.60])/($32×0.40×1000))-1]×100=15.6% Alternative (Check): Calculate the all cash return and multiply by the margin leverage factor. =[(34000-32000)/32000]×[1/0.401=6.35%×2.5=15.6% Part 2: Calculate Margin Call Price: Since the investor is short (sold the stock), the formula for the margin call price is: Margin Call=(original price)×(1+initial margin)/(1+maintenance margin)=$ 32×(1+0.40)/(1+0.25)=approximately $ 35.80.