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On September 1st, you instruct your broker to buy 350 Golden Hawk shares utilizing the full margin. She informs you that your margin requirement is
On September 1st, you instruct your broker to buy 350 Golden Hawk shares utilizing the full margin. She informs you that your margin requirement is 75%. Golden Hawk is trading at $55/share. Assume interest of 4.5% is charged on any margin used a. How much of your own money must you have available to invest? (1 point) b. How much, if anything, will you borrow from the broker? (1 point) c. If you sell your GoldenHawk shares on December 1st at a stock price of $58/share, what will be the amount of your capital gain? (1 point) d. What is your yield? (1 point)
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