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The current price of Telecom RSP is $50 and you want to purchase $10,000 its stock on 50% margin. The broker call loan rate is
The current price of Telecom RSP is $50 and you want to purchase $10,000 its stock on 50% margin. The broker call loan rate is 8%.
a. Assuming Telecom pays no dividends, what will be your return on investment, if Telecom goes up 10%?
b. What is the minimum price Telecom can hit before you receive a margin call?
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