$$$$At a price of BDT $286$ per share, you leveraged your margin account to purchase $500$ shams of Grameen Phone stock. You had borrowed BDT $70,000$ 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 $13\mathrm{.}75\%.$ If the maintenance margin is $30\%,$ below what stock price level would you get a margin call? $(3$ Marks$)$  

 

$($b$)$ Consider the hree stocks in the following table. P$1$ represents price at time t$,$ and Q$1$ represents

shares outstanding at time t$.$ Stock B splits two$-$for$-$one in the last period.

Stock P$0$ Q$0$ P$1$ Q$1$ P$2$ Q$2$

A $202000242000242000$

B $403000643000226000$

C $654000624000624000$

Calculate the rate of return on a price$-$weighted index of the three stocks for the first period $($t $=0$ to t $=1).$ What must happen to the divisor for the price$-$weighted index in year $2?$

Answer rating: 100% (QA)

Part a To determine the stock price level at which a margin call would occur we need to calculate th... View the full answer