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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 5:07 pm
by answerhappygod
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 Bid Ask
Today 28.25 29.38 Two months time 31.30 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%