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Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,100 shares at $55 per share with an initial margin of 40 percent. One year later, the stock is selling for $61 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
Reference No.:- M91529126

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