Yoursquove just opened a margin account with 15000 at your


You’ve just opened a margin account with $15,000 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $62 per share. Suppose the call money rate is 5.5 percent and your broker charges you a spread of 1 percent over this rate. You hold the stock for 6 months and sell at a price of $69 per share. The company paid a dividend of $.53 per share the day before you sold your stock.

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Financial Management: Yoursquove just opened a margin account with 15000 at your
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