Question
You decide to buy Tulane Tech shares on margin that are currently priced at $50. The initial margin is 40%, the maintenance margin is 25%,
You decide to buy Tulane Tech shares on margin that are currently priced at $50. The initial margin is 40%, the maintenance margin is 25%, and the interest rate is 5% per annum. You decide to invest $10,000 of your own money using the margin option to its full extend.
3. If after a year the price of the stock has increased by 20%, what would be your return?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
