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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 800 shares at $37 per
Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 800 shares at $37 per share with an initial margin of 30 percent. One year later, the stock is selling for $42 per share, and you close out your position. What is the percent of your return assuming no dividends are paid?
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