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Al Anwar Holding share price is 65 OMR per share. The price of the share is now trading at 75 OMR per share. The interest
Al Anwar Holding share price is 65 OMR per share. The price of the share is now trading at 75 OMR per share. The interest rate is 11% interest and initial margin is 60%. An investor now considers investing 200 shares. You are required to:
- Briefly discuss marginal account and actual margin of the financial investment (5 marks).
- Calculate margin return of the 200 shares (2 marks)
- Calculate new margin return of the share when the price is increased to 70 OMR per share (3 marks).
- Critically advise investor whether it is worthwhile to invest in the Al Anwar Holding share (10 marks).
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