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Today, you purchased 350 shares of stock at $48 per share. The initial margin requirement is 55% and the maintenance margin is 35%. The call
Today, you purchased 350 shares of stock at $48 per share. The initial margin requirement is 55% and the maintenance margin is 35%. The call money rate is 4.25% and you are charged a 1.5% premium over this rate. What will your rate of return be if you sell your shares one year from now for $51 a share? No dividend is paid for this stock.
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