Ques 1 :- Assume that you would like to buy 100 shares of a stock that is currently priced at $ 70. The initial margin is 75% and maintenance margin is 35%.

If the stock pays $ 2 per share in annual dividend; the cost of borrowing is 3% per year; transaction costs are $ 80 calculate total dollar return and return on investment. Show your results step by step. Assume that you had bought the stock at $70 per share and it is now at $ 80 and you own 100 shares. Show your results below and in step by step.

Capital gain =

Dividend =

Interest cost=

Total dollar return =

Total % return on investment =

Ques 2 :- Calculate capital gain in dollar value and in percentage when you buy at $20 and sell at $30.

Dollar gain=

Percentage gain=