James sells short one share for 1000. He is asked for a margin requirement of 60% and the margin account earns a rate of 10% per annum. One year later he buys back the stock for 790 . Jack sells a stock short for 600. He is required to have a margin call of 50% and the margin account generates a the margin account of 10%. One year later he buys back his share for 450. It is known that both shares pay the same dividend and both generate the same rate of yield. Determine the amount of the dividend.

James sells short one share for 1000. He is asked for a margin requirement of 60% and the margin account earns a rate of 10% per annum. One year later he buys back the stock for 790 . Jack sells a stock short for 600. He is required to have a margin call of 50% and the margin account generates a the margin account of 10%. One year later he buys back his share for 450. It is known that both shares pay the same dividend and both generate the same rate of yield. Determine the amount of the dividend.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 60P

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