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please show all work for the upvote!! 29) Suppose that shares in Intel are currently selling at $25 per share. You buy 200 shares of
please show all work for the upvote!!
29) Suppose that shares in Intel are currently selling at $25 per share. You buy 200 shares of Intel using $3,000 of your own money, borrowing the remainder of the purchase price from your broker. [6 + 7 = 13 points) Show your work clearly and legibly a. If the maintenance margin is 25%, how low can Intel's price fall before you get a margin call? [5 points) b. What is the rate of return on your position if Intel is selling at $30 after one year (ignore interest on the margin loan)? [5 points] Step by Step Solution
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