Suppose the call money rate is 68 percent and you pay a


Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your position. What is your return assuming no dividends are paid?

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Business Economics: Suppose the call money rate is 68 percent and you pay a
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