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On September 1st, you instruct your broker to buy as many Golden Havik shares as possible utilizing the futi margin. She informs you that your
On September 1st, you instruct your broker to buy as many Golden Havik shares as possible utilizing the futi margin. She informs you that your margin requirement is 80%. Golden Hawk is trading at $40/share and you have $7.200 available to invest. If you sell your Golden Hawk shares on December 1st at a stock price of $4B/share, what will be the amount of your capital gain and yield? Assume interest of 4% is charged on any margin used. 4 marks a. How many Golden Hawk shares will you purchase? b. How much. If anything, will you borrow from the broker? c. What is your capital gain? d. What is your yield? a. d
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