Using the following information, 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.

What of the following choices is closest to the correct answer? The margin transaction return is:

A.-12.00% and the investor will receive a margin call at a stock price of $16.67.

B.24.00% and the investor will receive a margin call at a stock price of $30.00.

C.-24.00% and the investor will receive a margin call at a stock price of $30.00.90.