Question: Data below is applicable to questions 1 85 2. You have been approached by a trader that requires assistance on marginbuying and shortselling on FirstRand

Data below is applicable to questions 1 85 2. You have

Data below is applicable to questions 1 85 2. You have been approached by a trader that requires assistance on marginbuying and shortselling on FirstRand Ltd. . He has provided you With the current Bid and Ask price of FirstRand Ltd. as well as a forecast of the price in 1 month time (see table below). Assume a portfolio Tualuefshort position of R10 000.00: Bid Ask Today R3011 13191.78 1 Month R6327 R6516 Question 1 Calculate the return assuming that shares are purchased on margin, where the margin amount is 80%, loan 20% and maintenance margin is 40%. A) 43.51% B) 44.58% C) 52.23% D) 53.19% E) -63. 33%

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