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Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,200 shares at $82 per

Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,200 shares at $82 per share with an initial margin of 70 percent. One year later, the stock is selling for $88 per share and you close out your position. What is your return assuming no dividends are paid?

Rate of return: _____

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