Question
The current market price for XYZ is $24 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year.
The current market price for XYZ is $24 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year. XYZ pays annual cash dividends of $0.95 per share. You believe the stock price will increase over the next year and wish to trade long using margin. Suppose you are correct and the stock rises to $29 per share at the end of the year. What is your percentage return on equity for this trade?
The current market price for XYZ is $59 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year. XYZ pays annual cash dividends of $2.15 per share. You believe the stock price will increase over the next year and wish to trade long using margin. Suppose you are correct and the stock rises to $65 per share at the end of the year. What is your percentage return on assets for this trade?
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Computational Finance Using C And C #
Authors: George Levy DPhil University Of Oxford
1st Edition
0750669195, 978-0750669191
