You are bullish on Telecom stock. The current market price is $50 per share, and you...

Question

Question

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #1

Compute the pnice of the Stock to mate te margin call i4- the im the manmer qiven beloco; morgin call it Maintaimence Margn- Nohaex Pr No. Share x price oprice -s5000 $l0000 $50 price- SOOo 130 $39.46 Terefore the price 8houldbo $38. Ч6Drkx0ertomatea Margin cae

Add a comment

Answer 2

Similar Homework Help Questions

You are bullish on Telecom stock. The current market price is $50 per share, and you...

You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. Round your answer to two decimal places and enter the number without the...
You are bullish on Telecom stock. The current market price is $80 per share, and you...

You are bullish on Telecom stock. The current market price is $80 per share, and you have $8,000 of your own to invest. You borrow an additional $8,000 from your broker at an interest rate of 9.0% per year and invest $16,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 11% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.) Rate of...
You are bullish on Telecom stock. The current market price is $10 per share, and you...

You are bullish on Telecom stock. The current market price is $10 per share, and you have $1,000 of your own to invest. You borrow an additional $1,000 from your broker at an interest rate of 8.5% per year and invest $2,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.) Rate of...

You are bullish on Pharma stock. The current market price is $60 per share, and you...

You are bullish on Pharma stock. The current market price is $60 per share, and you have $3,000 of your own to invest. You borrow an additional $3,000 from your broker at an interest rate of 5% per year and invest $6,000 in the stock. a. What will be your rate of return if the price of Pharma stock goes up by 15% during the next year? b. How far does the price of Pharma stock have to fall for...
The current market price of a stock is $40 per share, and you have $8,000 of...

The current market price of a stock is $40 per share, and you have $8,000 of your own to invest. You borrow an additional $8,000 from your broker at an interest rate of 4.0% per year and invest $16,000 in the stock. a.) What will be your rate of return if the price of the stock goes up by 6.0% during the next year? b.) How far does the price of the stock have to fall for you to get...
You are bullish on AAPL stock. The current price is $175/share and you have $5,000 of...

You are bullish on AAPL stock. The current price is $175/share and you have $5,000 of your own to invest. You then borrow an additional $2,500 from your broker at an interest rate of 7.5% per year and invest a total of $7,500 in the stock. If AAPL does not pay a dividend, what is your return if AAPL stock remains unchanged over the year? +7.5% Can't be determined from information provided 0% -3.75% -7.5%

I want the full step about how to calculate part a+b, thanks. 2. You are bullish...

I want the full step about how to calculate part a+b, thanks. 2. You are bullish on HKEx stock. The current market price is $250 per share, and you have $100,000 of your own to invest. You borrow an additional $100,000 from your broker at an interest rate of 5% per year and invest $200,000 in the stock. a. Suppose the price of HREx stock falls immediately after your purchase. The maintenance margin is 35%. How low can the price...
The current price of a stock is $25 per share. You have $10,000 to invest. You...

The current price of a stock is $25 per share. You have $10,000 to invest. You borrow an additional $10,000 from your broker and invest $20,000 in the stock. If the maintenance margin is 30 percent, at what price will a margin call first occur? Select one: A. $19.71. B. $17.86. C. $9.62.
You are bearish on Telecom and decide to sell short 100 shares at the current market...

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Enter your answer without a dollar sign Your Answer: Answer Question 5 (1 point) continued from the previous question) How high can the price of the stock go before you get...

. You are bullish on Google stock. The current price is $1,075/share and you have $10,0010...

. You are bullish on Google stock. The current price is $1,075/share and you have $10,0010 of your own to invest. You then borrow an additional $10,000 from your broker at an interest rate of 5% per year and invest a total of $20,000 in the stock. If Google does not pay a dividend, which of the following is TRUE? A.) If Google stock declines by 20% over the next year, the total return on your investment is -45%. B.)...

You are bullish on Telecom stock. The current market price is $50 per share, and you...

Homework Answers