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You are bearish on stock ABC, and its current market price is Euro 53 per share. You ask your broker to sell short 1, 300
You are bearish on stock ABC, and its current market price is Euro 53 per share. You ask your broker to sell short 1, 300 shares. Your broker has a 50% margin requirement on short sales, so you add Euro 34, 450 on your account with the broker. Holding period is one year. If the maintenance margin is 35%, at which price you will get a margin call? (Round your answer to 2 decimal places.) Market price If you cannot allow yourself a loss higher than Euro 6, 500, which price-contingent order will you place and at which price? (Round your answer to 1 decimal place.) ABC has paid a year-end dividend of Euro 0.53 per share. Calculate your rate of return if, after one year the ex-dividend price per share is Euro 43. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return %
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