QUESTION 5

An investor buys $19 thousand dollars of ABT stock at $20 per share, using 54% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.62 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return?

Enter answer in percents, accurate to 2 decimal places.

QUESTION 6

You sell short 200 shares of BSX at $50 per share. You post the 50% margin required for the short sale. Assume you pay 5% interest on the initial value of the loan of shares. The company stock pays dividends of $0.33 per share every quarter. What is your rate of return on this position, if you close it out at $31 per share after one year?

Enter answer in percents, accurate to 2 decimal places.

QUESTION 7

You purchased 200 shares of CNX common stock on margin at $44 per share. Assume the initial margin is 50% and the maintenance margin is 36%. You will get a margin call if the stock drops below ________.

Assume the stock pays no dividends, and you pay no interest on the margin loan points

QUESTIOn 8

You buy 155 shares of JPM, at $110 per share. If you wish to limit your maximum loss to $10,000, you should place a stop-sell order at ____.

Ignore possible dividends and trading costs.