Question
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?
PLEASE DO NOT POST ANSWERS COPIED FROM DIFFERENT QUESTIONS! Need genuine help here.
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