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You borrowed 100 shares of Intel from your broker and sold them at the price of $50 per share. You put in $2500 in cash
You borrowed 100 shares of Intel from your broker and sold them at the price of $50 per share. You put in $2500 in cash buffer. The broker charges an interest rate of 8% per year on the stock loan. One year later, you bought back the 100 Intel shares to return to your broker. At that time, the price per share is $53. The return of this trade is -0.28 -0.42 0.15 0.3 You put in $10,000 and borrow $2000 from your broker to purchase 100 shares of Disney at the price of $120 per share on margin. What is the initial margin? 0.5 0.6 0.83 0.62
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