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You are bullish on Telecom stock. The current market price is $250 per share, and you have $21,000 of your own to invest. You borrow

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You are bullish on Telecom stock. The current market price is $250 per share, and you have $21,000 of your own to invest. You borrow an additional $21,000 from your broker at an interest rate of 7% per year and invest $42,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes down by 8% during the next year? The stock currently pays no dividends. (Negative value should be indicated by a minus sign. Enter your answer as a percent rounded to the nearest whole number.) Rate of return b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. (Round your answer to 2 decimal places.) Margin call will be made at price or lower You are bearish on Telecom and decide to sell short 280 shares at the current market price of $100 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole dollar.) Cash or securities to be put into brokerage account b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.) Margin call will be made at price or higher

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