Suppose that you sell short 200 shares of Weston (WN), currently selling for $80 per share, and give your broker $10000 to establish your margin account.
A. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if WN stock is selling at (i) $85; (ii) $80; (iii) $75? Assume that WN pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
(i) Rate of return ______%
(ii) Rate of return _______%
(iii) Rate of return _______%