One year later the stock is selling for 48 per share and


Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 800 shares of stock at $36 per share. You put up $15,000.

One year later, the stock is selling for $48 per share, and you close out your position. What is your return assuming a divided of $.65 per share is paid?

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Financial Management: One year later the stock is selling for 48 per share and
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