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If you shorted Apple at $225 and covered your short at $240, what is your dollar profit or loss, assuming Apple paid a $2 dividend
If you shorted Apple at $225 and covered your short at $240, what is your dollar profit or loss, assuming Apple paid a $2 dividend per share while you were short a. If you bought GE at $10 and sold it at $15, what is your dollar profit or loss per share b. Now assume that you posted 50 percent margin and borrowed the balance for each ignoring transaction costs)? What is your holding period return? Show your work. share you bought in part a. What is your holding period return for each share? Your brokerage firm requires a 35 percent maintenance margin. If GM drops in price, at c. what price would you receive a margin call from your broker? d. Assume you receive the margin call AT the price you calculated in part c. Describe, exactly, the options your broker will offer you. Be Specific
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