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You have been watching Anglo Platinum (JSE: AMS) and believe that the share price should increase over the next two mont
Posted: Mon Nov 15, 2021 5:02 pm
by answerhappygod
- You Have Been Watching Anglo Platinum Jse Ams And Believe That The Share Price Should Increase Over The Next Two Mont 1 (50.18 KiB) Viewed 90 times
You have been watching Anglo Platinum (JSE: AMS) and believe that the share price should increase over the next two months. Assuming that your broker charges a borrowing rate of 7% a year, requires an initial margin of 60%, maintenance margin of 30% and an initial assumed exposure of 1000 shares, calculate: Time Today Two months time Bid 28.25 31.30 Ask 29.38 32.55
Question 1 The return on then margin strategy is closest to: A) 13.08% B) 11.71% C) 6.69% D) 8.06% E) 10.14%
Question 2 The price equal to or below which you will get a margin call is closest to: A) R21.66 B) R19.39 C) R16.79 D) R13.35 E) R22.41