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Q3- Suppose you purchase 300 shares of stock at $75 per share with an initial cash investment of $10000 it your broker requires 25% maintenance
Q3- Suppose you purchase 300 shares of stock at $75 per share with an initial cash investment of $10000 it your broker requires 25% maintenance margin, at what share price will you be subject to a margin call? Suppose that t call money rate is 4% and you are charged 2% premium over this rate. Calculate your return on investment for eat' of the following share prices one year later. What would your rate of return be in each case if you purchased $1000 of stock with no margin? Assume that there are no dividends
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