GameStop is currently selling for $100. You want to take advantage of what you perceive...
90.2K
Verified Solution
Link Copied!
Question
Finance
GameStop is currently selling for $100. You want to take advantage of what you perceive as high expected returns on this stock by buying some shares on margin. You have $1,500 of cash in your margin account currently and no active positions. If the minimum initial margin your broker allows is 50%, what is the maximum number of shares you can currently buy on margin? The price rises/falls by $20 in one year, and your broker charges you 8% interest on your loan at that time. What is your one-year return?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.