Question: Initial Margin = 60% Maintenance Margin = 40% Initial Price = $120 Expected Dividend = $2 1) You bought the stock on margin with the

Initial Margin = 60% Maintenance Margin = 40% Initial Price =

Initial Margin = 60% Maintenance Margin = 40% Initial Price = $120 Expected Dividend = $2 1) You bought the stock on margin with the broker. At the end of 180 days the stock is selling for $116 and you received the $2 dividend. What is your HPR? What is your effective annual return on this investment? What is your new margin level? When (i.e. the new price level) will you get a margin call? Initial Margin = 60% Maintenance Margin = 40% Initial Price = $120 Expected Dividend = $2 1) You bought the stock on margin with the broker. At the end of 180 days the stock is selling for $116 and you received the $2 dividend. What is your HPR? What is your effective annual return on this investment? What is your new margin level? When (i.e. the new price level) will you get a margin call

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