Miguel Torres purchases 100 shares of Can'tWin.com for $47.48 per share, using as little of his own money as he could. His broker has a 58% initial margin requirement and a 31% maintenance margin requirement. The price of the stock falls to $28.95 per share. What does Miguel need to do? To get the account back to the maintenance margin requirement of 31%, Miguel must add ________. (Round to the nearest cent.)
Miguel Torres purchases 100 shares of Can'tWin.com for $47.48 per share, using as little of his...
Carlos buys 100 shares of IBM for $100 per share on 50% margin. a) How much money does Carlos need to give to his broker, and how much money does he borrow? b) If IBM goes up to $120 per share, how many more shares could Carlos sell without sending his broker more money? c) If IBM goes down to $80 per share, how much money does Carlos have to send his broker to get back to the 50% margin...
You purchase 100 shares of Twitter (TWTR) at $27 per share. To pay the purchase, you borrow $1,000 from your broker. If Twitter falls to $25 per share, what is the remaining margin (percentage) in your account? Question: If the maintenance requirement is 30%, will you receive a margin call when the price falls to $15? Ignore the interest rate on the loan.
You have just purchased 200 shares of stock on margin at $60 per share. The broker lent you $5,000 to help pay for the purchase. a. The initial margin in the account at the time you purchased the stock is 7000 b. If the share price falls to $35 per share, the remaining margin in the account is ______ c. If the maintenance margin requirement is 35%, the amount of the margin call will be _____
Suppose that XYZ currently is trading at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase cost from your broker. The rate on the margin loan is 8%. a) What is your rate of return if the price of XYZ immediately changes to $22? b) With the same information on stock XYZ and your initial margin above, assume a year has passed. How low can XYZ's price per share fall...
Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...
Dée Trader opens a brokerage account, and purchases 390 shares of Internet Dreams at $72 per share. She borrows $3,610 from her broker to help pay for the purchase (Ignore transaction costs). The interest rate on the loan is 8%. Requirement 1: What is the margin (aka, $ of equity) in Dée's account when she first purchases the stock? (Omit the "$" sign in your response.) Margin $ Requirement 2: (a) If the share price falls to $62 per share...
7) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum initial margin requirement of 75%. She held the stock for exactly 4 months and sold it without brokerage costs at the end of that period. The minimum maintenance margin was 55 %. If the stock price subsequently falls to $40, determine whether there will be a margin call and how much cash will be needed to top up the account and satisfy the call
Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $20 per share. She borrows $2,500 from her broker to help pay for the purchase. The interest rate on the loan is 7%. a. What is the margin in Dée's account when she first purchases the stock? Margin b. If the share price falls to $10 per share by the end of the year, what is the remaining margin in her account? (Round your answer to...
6) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum initial margin requirement of 75%. She held the stock for exactly 4 months and sold it without brokerage costs at the end of that period. The minimum maintenance margin was 55%. If the stock price subsequently falls to $60, calculate the actual margin percentage, and indicate whether Marlene's margin account would have excess equity, would be restricted, or would be subject to a margin...
A trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. If the maintenance margin requirement is 50%, below what stock price will she receive a margin call? Round your answer to 2 decimal places. For example if your answer is 0.666, then please write down 0.67.