15. Margin and Leverage (LO3, CFA4) 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?