You buy 900 shares at 46 per share with an initial margin


Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 900 shares at $46 per share with an initial margin of 25 percent. One year later, the stock is selling for $54 per share, and you close out your position. What is your return assuming no dividends are paid?

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Financial Econometrics: You buy 900 shares at 46 per share with an initial margin
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