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1B. Suppose the call money rate is 6.2 percent, and you pay a spread of 1.9 percent over that. You buy 900 shares at $46

1B. Suppose the call money rate is 6.2 percent, and you pay a spread of 1.9 percent over that. You buy 900 shares at $46 per share with an initial margin of 60 percent. One year later, the stock is selling for $51 per share and you close out your position. What is your return assuming no dividends are paid?

1C. Carson Corporation stock sells for $79 per share, and youve decided to purchase as many shares as you possibly can. You have $46,762 available to invest. What is the maximum number of shares you can buy if the initial margin is 50 percent?

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