At a price of BDT 2 8 6 per share, you leveraged your margin account to purchase
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Question:
At a price of BDT per share, you leveraged your margin account to purchase shams of Grameen Phone stock. You had borrowed BDT from the brokerage house in the form of a margin loan in order to settle the complete proceeds amount. The amount that was borrowed comes with an interest rate of If the maintenance margin is below what stock price level would you get a margin call? Marks
b Consider the hree stocks in the following table. P represents price at time t and Q represents
shares outstanding at time t Stock B splits twoforone in the last period.
Stock P Q P Q P Q
A
B
C
Calculate the rate of return on a priceweighted index of the three stocks for the first period t to t What must happen to the divisor for the priceweighted index in year
Related Book For
Fixed Income Securities Valuation Risk and Risk Management
ISBN: 978-0470109106
1st edition
Authors: Pietro Veronesi
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