Question

Miguel Torres purchases 100 shares of​ Can'tWin.com for ​$47.48 per​ share, using as little of his...

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.)

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Miguel Torres purchases 100 shares of​ Can'tWin.com for ​$47.48 per​ share, using as little of his...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Carlos buys 100 shares of IBM for $100 per share on 50% margin. a) How much...

    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...

    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...

    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...

    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...

    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...

    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...

    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...

    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...

    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...

    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.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT