(with decimal places) Months ago you used a leverage ratio of 1.82 to trade a stock...
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(with decimal places) Months ago you used a leverage ratio of 1.82 to trade a stock at a price of $60. The interest rate of the call loan is 4%. The maintenance margin ratio is 35%. The stock is expected to pay $0.5 dividend per share. If you want to limit your loss to no more than -30%, the conditional price in your hedging trade order should be $ (with decimal places) Months ago you used a leverage ratio of 1.82 to trade a stock at a price of $60. The interest rate of the call loan is 4%. The maintenance margin ratio is 35%. The stock is expected to pay $0.5 dividend per share. If you want to limit your loss to no more than -30%, the conditional price in your hedging trade order should be $
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To calculate the conditional price in your hedging trade order we need to consider the leverage rati... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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