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Suppose you short - sell 1 0 0 0 shares of AOT stock at $ 3 0 per share. Assume further the initial margin requirement
Suppose you shortsell shares of AOT stock at $ per share. Assume further the initial margin requirement was a What is the maximum amount you can lose? b By the end of the year the stock pays dividends of $ per share and the price of the stock surges to $ The maintenance margin requirement is Will you receive a margin call from the broker? c Find the rate of return on this investment.
Suppose you shortsell shares of AOT stock at $ per share.
Assume further the initial margin requirement was
a What is the maximum amount you can lose?
b By the end of the year the stock pays dividends of $ per share
and the price of the stock surges to $ The maintenance margin
requirement is Will you receive a margin call from the
broker?
c Find the rate of return on this investment.
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