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Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 900 shares of stock at
Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 900 shares of stock at $80 per share. You put up $46,800. One year later, the stock is selling for $90 per share and you close out your position. What is your return assuming a dividend of $0.86 per share is paid?
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