Question:
Find the adjusted monthly prices for the past year for both Novartis AG (NVS) and Pfizer (PFE). Assume you just inherited $3000. You plan to use half of your inheritance in Novartis AG and the other half in Pfizer. You purchase (go long) in Novartis and sell short Pfizer. Both transactions are done using margin where the initial margin is 50% and the maintenance margin is 30%. Using only monthly prices, determine if either strategy received a margin call and if so how much. What is the return on both investments? Explain the differences or similarities in returns.