An investor buys 200 shares of ABC at the market price of $100 on full margin. The initial margin requirement is 40 percent and the maintenance margin requirement is 25 percent. If the shares of stock later sold for $ 200 per share, what is the rate of return on the margin transaction（）
A. 250%.
B. 100%.
C. 200%.
参考答案：A
解析：
Step 1: Calculate All Cash Return: Cash Return % = [(Ending Value/Beginning Equity Position)-1]×100=[($200×200)/($100×200)-1]×100=100% Step 2: Calculate Leverage Factor: Leverage Factor =1/Initial Margin %=1/0.40=2.50 Step 3: Calculate Margin Return: Margin Transaction Return = All cash return × Leverage Factor =100%×2.50=250% Note: You can verify the margin return as follows: Margin Return % = [((Ending Value - Loan Payoff)/Beginning Equity Position)-1]×100=[(([$200×200]-[$100×200×0.60])/($100×0.40×200))-1]×100=[((40000-12000)/8000)-1]×100=250%