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I need this ASAP please 12. Suppose that you sell short 1,000 shares of Intel, currently selling for $20 per share, and give your broker
I need this ASAP please
12. Suppose that you sell short 1,000 shares of Intel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Intel stock is selling at: (i) $22; (ii) $20; (iii) $18 ? Assume that Intel pays no dividends. b. If the maintenance margin is 25%, bow high can Intel's price rise before you get a margin call? c. Redo parts (a) and (b), but now assume that Intel also has paid a year-end dividend of $1 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid Step by Step Solution
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