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15 April, 02:30

Currently, the price of Mattco stock is $30 a share. You have $30,000 of your own funds to invest. Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share (ignore dividends and taxes)

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  1. 15 April, 05:34
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    20%

    Explanation:

    Given that

    Share price $30 per share

    Amount invested $30,000

    Number of shares purchased is 2000 which is come from

    = 30,000 shares : 50% : $30

    = 2,000 shares

    Now Gain per share is $3 ($33 - $30)

    So, Total Gain $6000

    And, Amount invested is $30,000

    So percentage of profit is

    = Total gain : invested amount

    = $6,000 : $30,000

    = 20%
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