Your client purchased 50,000 shares of P&G on February 4, 2018 at $79.92 per share. She...

Your client purchased 50,000 shares of P&G on February 4, 2018 at $79.92 per share. She also purchased these shares on margin, borrowing 50% of the purchase price of these shares. The margin interest rate is 2% per year, and the maintenance margin is 35%. She planned to sell her position on February 4, 2019.

She would have been subject to a margin call for a price $___?___ or lower. Assume the annual margin interest rate would apply regardless of the actual borrowing period. Round your answer into two decimal places.

Assume she sells her entire position at $98.15 per share a year later. Her return on this position over the last year will be ___?___%. Round your answer for two decimal places.

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jeff jeffy answered 2 years ago

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