Use the following information to solve for SIX QUESTIONS BELOW. Therefore, questions (#16 - #21) will be based on this same information. DO NOT ROUND YOUR INTERIM CALCULATIONS FOR ACCURATE RESULTS. You just short sold 400 shares of ABD stock for $12,000. The sale was a short sale with an initial margin requirement of 70%. The maintenance margin is 40%. 8 months later, Some positive news concerning the company was released and the stock price jumped this morning to $38 per share. QUESTION #6. What is your EAR (Effective annual rate)? WRITE YOUR ANSWER IN A PERCENTAGE FORMAT UP UNTIL TWO DECIMALS WITHOUT THE % SIGN. (for example, 10.40% should be written as 10.40 rather than 0.1040)

Use the following information to solve for SIX QUESTIONS BELOW. Therefore, questions (#16 - #21) will be based on this same information. DO NOT ROUND YOUR INTERIM CALCULATIONS FOR ACCURATE RESULTS. You just short sold 400 shares of ABD stock for $12,000. The sale was a short sale with an initial margin requirement of 70%. The maintenance margin is 40%. 8 months later, Some positive news concerning the company was released and the stock price jumped this morning to $38 per share. QUESTION #6. What is your EAR (Effective annual rate)? WRITE YOUR ANSWER IN A PERCENTAGE FORMAT UP UNTIL TWO DECIMALS WITHOUT THE % SIGN. (for example, 10.40% should be written as 10.40 rather than 0.1040)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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