Question: URGENT! In 20 mins please! Please no need to solve and dont show the working, please just tell quickly if answer is A, B, C

URGENT! In 20 mins please! Please no need to solve and dont show the working, please just tell quickly if answer is A, B, C or D ASAP! JUST ANSWER THE OPTION! Thank you in advance!

You use 50% margin to purchase 500 shares of Microsoft that are currently selling at $100 per share. What will be your rate of return after 6 months if Microsoft is selling at $120? (Ignore any dividends and fees.)

a. The money you put in the investment is 500*100 =50000. The profit you get from the investment is (120-100)*500*50% = 5000. Your return is 5000/50000 =10%.

b. The money you put in the investment is 500*100*50% =25000. The profit you get from the investment is (120-100)*500 = 10000. Your return is 10000/25000 =40%.

c. The money you put in the investment is 500*100 =50000. The profit you get from the investment is (120-100)*500 = 10000. Your return is 10000/50000 =20%.

d. The money you put in the investment is 500*100*50% =25000. The profit you get from the investment is (120-100)*500*50% = 5000. Your return is 5000/25000 =20%.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!