PLEASE ONLY NEED THE ANSWER NO EXPLANATIONS Question 18 (0.5 points) Assume that...
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PLEASE ONLY NEED THE ANSWER NO EXPLANATIONS
Question 18 (0.5 points) Assume that you sell short 1,000 shares of common stock at $35 per share, with an initial margin at 50%. What would be your rate of return if you repurchase the stock at $25 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. 1) 20.47% 2) 25.63% 3) 57.14% 4) 77.23% 5) 38.52% Question 19 (0.5 points) You purchased 100 shares of common stock on margin at $40 per share. Assume that the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $25? Ignore interest on margin. 1) 0.33 2) 0.55 3) 0.20 4) 0.23 5) 0.25
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