Suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over
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Suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over that. You buy 1,000 shares at $40 per share with an initial margin of 50 percent. One year later, the stock is selling for $45 per share, and you close out your position. What is your return assuming no dividends are paid?
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Given Data Initial stock price 40 of shares 1000 Call money ...View the full answer
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Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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