Unformatted text preview: b. If after one year, the stock price falls to $40 per share. You buy stocks at this price and close your position. What is your rate of return? c. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?...
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This note was uploaded on 03/29/2012 for the course ECON 101 taught by Professor Schneider during the Spring '11 term at Kansas State University.
- Spring '11