Business, 17.02.2022 08:10 elbehairy64

You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin requirement is 60% and the commission on the sale is $50 and the broker charges 10% annual interest. AMF Corporation paid a $0.50 per share dividend while you were short the stock. After one year you cover your short sale at $35 per share with a $50 commission for the purchase. 1. What is your total dollar return on this investment?
2. What is your annual rate of return on this investment?
3. Suppose you purchase 200 shares of Best Hat Corporation at $52 a share by making a margin deposit of 50%. If the maintenance margin is 30%, at what price will you receive a margin call?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:20, GreenHerbz206

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?

Answers: 1

continue

Business, 21.06.2019 21:30, nickespinosa11

Gary becker's controversial the economics of discrimination concludes that price discrimination has no effect on final profits. price discrimination benefits monopolies. labor discrimination in hiring results in more efficient allocations of production. discrimination in hiring practices has no effect on final profits. labor discrimination harms firms that practice it due to increased labor costs. price discrimination harms monopolies, which refutes over two centuries of economic theory.

Answers: 3

continue

Business, 22.06.2019 04:00, tmcdowell69

Don’t give me to many notifications because it will cause you to lose alot of points

Answers: 1

continue

Business, 22.06.2019 13:00, notorius315

The green revolution is a scientific breakthrough that improved seeds for basic crops. how did the green revolution impact the supply of basic crops such as wheat and corn? the supply of wheat and corn increased. there was no impact on the supply of basic crops. the supply of basic crops did not change, but the quantity supplied of basic crops increased. the supply of wheat and corn decreased.

Answers: 3

continue

You know the right answer?

You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin requir...