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 _____
Value of Position = 200(6,000) = $12,000
Broker Amount = $5,000
Initial margin = 12,000 - 5,000 = $7,000
a.
Initial Margin 7,000/12,000 = 58.33%
b.
Remaining Margin = 35(200) - 5,000
Remaining Margin = $2,000
c.
Margin Call Price = 60(1 - 0.5833)/(1 - 0.35)
Margin Call Price = $38.46
You have just purchased 200 shares of stock on margin at $60 per share. The broker...
You purchased 200 shares of CNX common stock on margin at $51 per share. Assume the initial margin is 50% and the maintenance margin is 34%. You will get a margin call if the stock drops below ________. Assume the stock pays no dividends, and you pay no interest on the margin loan. PLEASE SHOW WORK
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.
1)You purchased 500 shares of stock for $28.50 a share. The initial margin requirement is 65 percent and the maintenance margin is 35 percent. What is the maximum percentage decrease that can occur in the stock price before you receive a margin call? Group of answer choices 38 percent 62 percent 57 percent 46 percent 35 percent 2)You recently purchased 200 shares of stock at a cost per share of $32.50. The initial margin requirement on this stock is 75...
Assume you purchased 600 shares of XYZ common stock on margin at $35 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.
You purchased 1,200 shares of stock on margin for $53 per share and sold the shares 3 months later for $58.60 per share. The initial margin requirement was 55 percent and the maintenance margin was 35 percent. The interset rate on the margin loan was 8 percent. You received no dividend income. What was your holding period return?
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...
Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________. $20,000 $12,000 $8,000 D.$15,000
You’ve borrowed $20,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share. Will you receive a margin call? (Hint: Use the statement "Your account starts at the initial margin requirement of 50%" to figure out how many Disney shares you purchased.) How far can the price of Disney...
You purchased 50 shares of PPI common stock on margin at $100 per share. Assume the initial margin is 60% and the maintenance margin is 30%. Below what stock price level by the year end would you get a margin call? The call loan rate is 2% per year. O a) $49.67 Ob) $58.29 O c) $44.97 O d) $52.86