Suppose you just bought the new Windoze 8 and that you realize that it really sucks....
Suppose you just bought the new Windoze 8 and that you realize that it really sucks. As a result you are sure that the price of Microsoft stock (currently trading for $36.4) is going to fall and you tell your broker to short 170 shares.
a.If the broker's initial margin is 50%, what is the value of personal assets you must have in your account to meet the margin requirement?
b.Assume you have the value of personal assets determined in part 1 in your account. If the broker has a maintenance margin of 30%, what is the highest value the price of Microsoft stock can reach before you are issued a margin call?
c.If the price of Microsoft stock falls to $20, what is the profit you make from the short sale?
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Suppose you just bought the new Windoze 8 and that you realize
that it really sucks....
Suppose you just bought the new Windoze 8 and that you realize that it really sucks....
Suppose you just bought the new Windoze 8 and
that you realize that it really sucks. As a result you are
sure that the price of Microsoft stock (currently trading for
$36.4) is going to fall and you tell your broker to short 130
shares.
a. If the broker's initial margin is 50%, what is the value of
personal assets you must have in your account to meet the margin
requirement?
b. Assume you have the value of personal assets...
help me please it has 3 parts 1,2,anf 3 thanks Intro Suppose you just bought the...
help me please it has 3 parts 1,2,anf 3
thanks
Intro Suppose you just bought the new Windoze 8 and that you realize that it is really bad. As a result you are sure that the price of Microsoft stock (currently trading for $35.5) is going to fall and you tell your broker to short 120 shares. Part 1 Attempt 1/5 for 10 pts. If the broker's initial margin is 50%, what is the value of personal assets you must...
The price of Facebook stock is currently at $56.51 and you decide to buy 130 shares...
The price of Facebook stock is currently at $56.51 and you decide to buy 130 shares on margin. You borrow $1,500 from your broker and finance the remainder of the purchase with your own cash. a.What is your margin (as a decimal value)? b.If the price rises to $60, and the interest you have to pay on the broker's loan is 1%, what is the net return (as a decimal value)? c.If the broker's maintenance margin is 40%, what is...
Indexes & Trading 1. The price of Facebook stock is currently at $56.51 and you decide...
Indexes & Trading
1. The price of Facebook stock is currently at $56.51
and you decide to buy 160 shares on margin. You borrow $1,500
from your broker and finance the remainder of the purchase with
your own cash.
a. What is your margin (as a decimal value)?
b. If the price rises to $60, and the interest you
have to pay on the broker's loan is 3%, what is the net return
(as a decimal value)?
c. If the...
help please, The price of Facebook stock is currently $35.79 and you decide to buy 170...
help please,
The price of Facebook stock is currently $35.79 and you decide to buy 170 shares on margin. The inital margin is 60%. Part 1 Attempt 1/5 for 10 pts. How much money will you borrow from the broker if you borrow as much as possible? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. If the price falls to $31.33, what is the new percentage margin in the account? 2+ decimals Submit Part 3 Attempt 1/5 for...
3. Define Short Sales. Make sure you explain what a long position and a short position...
3. Define Short Sales. Make sure you explain what a long position and a short position are. a. Now assume that that you short 500 shares of AT&T (T) at S50 per share. Your broker has a 40% initial margin. How does this look in the balance sheet? Liabilities and Account Equity b. Your broker has a maintenance margin of 30%. If the price of the stock falls to $30 per share, what is your new margin? Are you benefited...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your account started at the initial margin requirement of 50%. With the margin account you bought ABC stock at $50 per share. The maintenance margin is 35%. Today, the stock price falls to $45 per share. Assume interest rate is 10%. What is the margin (your equity) in your account when you first purchase the stock? b. Will you receive a margin call? (Please consider...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your account started at the initial margin requirement of 50%. With the margin account you bought ABC stock at $50 per share. The maintenance margin is 35%. Today, the stock price falls to $45 per share. Assume interest rate is 10%. What is the margin (your equity) in your account when you first purchase the stock? b. Will you receive a margin call? (Please consider...
need help with questions 3,4,5,6 please You have purchased 500 shares of MSFT (Microsoft) at $100...
need help with questions 3,4,5,6 please
You have purchased 500 shares of MSFT (Microsoft) at $100 per share using the maximum percentage of borrowed (marained) funds per FRB Regulation T. The maintenance margin can Tevel on your brokerage account is 25%. When will you receive a margin call on your account 2. Relative to question 1. If the maintenance margin call level on your account was 35% rather than 25%, what would your new margin call level be? 3. Relative...
1. You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on...
1. You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on margin. Later, the value of the stocks held short rises to $250,000. What is your account margin in percent? 1. You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker. Later, the value of your stock holdings falls to $150,000. What is your account margin in percent?
Suppose you just bought the new Windoze 8 and
that you realize that it really sucks. As a result you are
sure that the price of Microsoft stock (currently trading for
$36.4) is going to fall and you tell your broker to short 130
shares.
a. If the broker's initial margin is 50%, what is the value of
personal assets you must have in your account to meet the margin
requirement?
b. Assume you have the value of personal assets...
help me please it has 3 parts 1,2,anf 3
thanks
Intro Suppose you just bought the new Windoze 8 and that you realize that it is really bad. As a result you are sure that the price of Microsoft stock (currently trading for $35.5) is going to fall and you tell your broker to short 120 shares. Part 1 Attempt 1/5 for 10 pts. If the broker's initial margin is 50%, what is the value of personal assets you must...
Indexes & Trading
1. The price of Facebook stock is currently at $56.51
and you decide to buy 160 shares on margin. You borrow $1,500
from your broker and finance the remainder of the purchase with
your own cash.
a. What is your margin (as a decimal value)?
b. If the price rises to $60, and the interest you
have to pay on the broker's loan is 3%, what is the net return
(as a decimal value)?
c. If the...
help please,
The price of Facebook stock is currently $35.79 and you decide to buy 170 shares on margin. The inital margin is 60%. Part 1 Attempt 1/5 for 10 pts. How much money will you borrow from the broker if you borrow as much as possible? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. If the price falls to $31.33, what is the new percentage margin in the account? 2+ decimals Submit Part 3 Attempt 1/5 for...
3. Define Short Sales. Make sure you explain what a long position and a short position are. a. Now assume that that you short 500 shares of AT&T (T) at S50 per share. Your broker has a 40% initial margin. How does this look in the balance sheet? Liabilities and Account Equity b. Your broker has a maintenance margin of 30%. If the price of the stock falls to $30 per share, what is your new margin? Are you benefited...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your account started at the initial margin requirement of 50%. With the margin account you bought ABC stock at $50 per share. The maintenance margin is 35%. Today, the stock price falls to $45 per share. Assume interest rate is 10%. What is the margin (your equity) in your account when you first purchase the stock? b. Will you receive a margin call? (Please consider...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your account started at the initial margin requirement of 50%. With the margin account you bought ABC stock at $50 per share. The maintenance margin is 35%. Today, the stock price falls to $45 per share. Assume interest rate is 10%. What is the margin (your equity) in your account when you first purchase the stock? b. Will you receive a margin call? (Please consider...
need help with questions 3,4,5,6 please
You have purchased 500 shares of MSFT (Microsoft) at $100 per share using the maximum percentage of borrowed (marained) funds per FRB Regulation T. The maintenance margin can Tevel on your brokerage account is 25%. When will you receive a margin call on your account 2. Relative to question 1. If the maintenance margin call level on your account was 35% rather than 25%, what would your new margin call level be? 3. Relative...
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