Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchased 700 shares of common stock on margin at $45 per share and sold them 7 months later at $50. Assume the margin requirement

image text in transcribed You purchased 700 shares of common stock on margin at $45 per share and sold them 7 months later at $50. Assume the margin requirement is 80%, interest on margin used is 5%, and commission paic on each transaction is 2%. What is your capital gain on this investment? The capital gain on the investment is $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Crypto Spotlight Series Decentraland

Authors: Nott U.r. Keys

1st Edition

979-8854247696

More Books

Students also viewed these Finance questions