Margin and leverage lo3 cfa4 suppose the call money rate is, Ask an Expert

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Margin and Leverage (LO3, CFA4) suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over that. You buy 1,000 shares at $40 per share with an initial margin of 50 percent. One year later, the stock is selling for $45 per share, and you close out your position. What is your return assuming no dividends are paid?

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Financial Management, Finance

Category:- Financial Management
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