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QUESTION 5 Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 900 shares at
QUESTION 5 Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 900 shares at $46 per share with an initial margin of 60 percent. One year later, the stock is selling for $52 per share and you close out your position. What is your return assuming no dividends are paid? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) h QUESTION 6 You purchase 900 shares of 2nd Chance Co. stock on margin at a price of $40. Your broker requires you to deposit $18,000. What is the initial margin requirement? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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