Use the following information.
You short sell on 60% margin, 100 shares of a stock with the following quotes:
Bid Ask
$64 $66
The maintenance margin set by your broker is 30%. Suppose the security price changes one month from now as follows: Bid: $55, and
Ask: $57, and you liquidate your position. The holding period return on your investment is:
20.83%
17.68%
44.87%
25.36%