Question
You purchase 100 shares of stock A at $50 per share. The initial margin is 50%. The broker charges 10% per year on this loan
You purchase 100 shares of stock A at $50 per share. The initial margin is 50%. The broker charges 10% per year on this loan and the maintenance margin is 40%. Suppose the price of the stock increases to $60 per share in one year and you immediately sell the stock. What is your return?
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Healthcare Finance Modern Financial Analysis For Accelerating Biomedical Innovation
Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
