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.
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You purchase 100 shares of Twitter (TWTR) at $27 per share. To
pay the purchase, you...
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $21.70 per share....
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $21.70 per share. You have employee stock options to purchase 1,000 TWTR shares for $20.8 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 88.6 percent and that the interest rate is 2.6 percent. (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? Call...
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 _____
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $20.70 per share....
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $20.70 per share. You have employee stock options to purchase 1,000 TWTR shares for $19.3 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 87.6 percent and that the interest rate is 2.1 percent. (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? •...
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $22.30 per share....
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $22.30 per share. You have employee stock options to purchase 1,000 TWTR shares for $21.7 per share. The options explre in three years. Assume that the annualized volatility of TWTR stock Is 89.2 percent and that the Interest rate is 2.9 percent. (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? Call...
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $20.10 per share. You have employee stock opti...
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $20.10 per share. You have employee stock options to purchase 1,000 TWTR shares for $18.4 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 87.0 percent and that the interest rate is 3.3 percent. (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? Call...
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...
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...
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...
1. A stock sells for $10 per share. You purchase 100 shares for $10 a share...
1. A stock sells for $10 per share. You purchase 100 shares for $10 a share (i.e., for $1,000), and after a year the price rises to $17.50. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was (a) 25 percent, (b) 50 percent, and (c) 75 percent? (Ignore commissions, dividends, and interest expense.) Please show how to solve in Excel Step-by-Step.
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.)...
The common shares of Twitter, Inc. (TWTR) recently traded on the NYSE for $22.30 per share. You have employee stock options to purchase 1,000 TWTR shares for $21.7 per share. The options explre in three years. Assume that the annualized volatility of TWTR stock Is 89.2 percent and that the Interest rate is 2.9 percent. (Assume the options are European options that may only be exercised at the maturity date.) a. Is this option a call or a put? Call...
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...
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...
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.)...
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