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You purchase 1 , 0 0 0 shares MSFT stock on margin at a price of $ 1 5 0 ? share. The margin rate
You purchase shares MSFT stock on margin at a price of $ share. The margin rate is continuously compounded. The margin loan is $ You want to analyze your potential returns under three scenarios for MSFTs stock price over the next year:
i $ share
ii $ share
iii $ share
Fill in the table below to show your calculates for each number in the box below.
tableCurrent Value,MSFT Stock Price year Later$ share,$ share,$shareAssetMargin Loan,,,,Equity Return,,,,
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