An investor short sells 400 shares of a stock for $ 20.62 per share. The initial...
An investor short sells 400 shares of a stock for $ 20.62 per share. The initial margin is 50 %, and the maintenance margin is 29 %. The price of the stock rises to $ 29.95 per share. What is the margin, and will there be a margin call?
The margin in the account is _______________%. (Round to the nearest percent.)
Homework Answers
Initial margin = 400*20.62*50% =$4124
Loss =(20.62-29.95)*400 =$3732
Balance in margin account =$392
I.e. 392/400*20.62 = 4.75%
I.e. 5%
Yes there will be margin call since margin has fallen below maintenance margin level
Add Answer to:
An investor short sells 400 shares of a stock for $ 20.62 per
share. The initial...
P2.19 (similar to) An investor short sells 400 shares of a stock for $20.09 per share....
P2.19 (similar to) An investor short sells 400 shares of a stock for $20.09 per share. The initial margin is 55%, and the maintenance margin is 28%. The price of the stock rises to $28.46 per share. What is the margin, and will there be a margin call? The margin in the account is。% (Round to the nearest percent)
An investor short sells 200 shares of a stock for $20.31 per share. The initial margin...
An investor short sells 200 shares of a stock for $20.31 per share. The initial margin is 51%, and the maintenance margin is 26%. The price of the stock rises to $28.68 per share. Wha is the margin, and will there be a margin call? The margin in the account is 1%. Round to the nearest percent.)
An investor short sells 200 shares of a stock for $20 per share. The initial margin...
An investor short sells 200 shares of a stock for $20 per share. The initial margin is 60%. How much equity will be initially required in the account to complete this transaction? In other words, what is the initial margin deposit? The initial margin deposit is $ (Round to the nearest dollar.)
An investor short sells 600 shares of a stock for $34 per share. The initial margin...
An investor short sells 600 shares of a stock for $34 per share. The initial margin is 48 %. How much equity will be required in the account to complete this transaction? The initial margin deposit is $_____ . (Round to the nearest dollar.)
An investor short sells 100 shares of a stock for S22 per share. The initial margin...
An investor short sells 100 shares of a stock for S22 per share. The initial margin is 60%. How much equity will be initially required in he account to complete this transaction? In other words what is the initial margin deposit? The initial margin deposit is s (Round to the nearest dollar.)
An investor short sells 300shares of a stock for $20.34per share. The initial margin is 59%,...
An investor short sells 300shares of a stock for $20.34per share. The initial margin is 59%, and the maintenance margin is 26%. The price of the stock falls to $14.25per share. What is the margin, and will there be a margin call? The margin in the account is _____%
HW SCUFU 1870, 90 20 P2.16 (similar to) Question Help An investor short sells 300 shares...
HW SCUFU 1870, 90 20 P2.16 (similar to) Question Help An investor short sells 300 shares of a stock for $21 per share. The initial margin is 52%. How much equity will be initially required in the account to complete this words, what is the initial margin deposit? action in other The initial margin deposit is $ (Round to the nearest dollar) P2.12 (similar to) Question Help Jerri Kingston bought 100 shares of stock at $86.03 per share using an...
3. CL shares are selling at $71.40. An investor sells 1000 shares of CL short. The...
3. CL shares are selling at $71.40. An investor sells 1000 shares of CL short. The initial margin requirement is 35 percent, maintenance margin is 20%, and the commission is $4.95 per trade. After 180 days, the price goes down to $69.75 and the investor closes out the short position. While the investor is in the short position, CL pays $0.85 per share dividends. What is a. the annualized rate of return? b. the price at which there will be...
2) You sell short 100 shares of ABC stock at $40 per share. The initial margin...
2) You sell short 100 shares of ABC stock at $40 per share. The initial margin is 50% and the maintenance margin is 40% How much do you post at the margin account as your initial margin per share? (20points) II) At what price will you get a margin call? (30points)
You sold short 1,000 shares of a stock at $46 per share. The initial margin is...
You sold short 1,000 shares of a stock at $46 per share. The initial margin is 50%. a) At what stock price would you receive a margin call if the maintenance margin is 35%? (do not consider dividends in question a) b) Assume that the stock paid a $0.25 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $40 per share at the end of the quarter?
P2.19 (similar to) An investor short sells 400 shares of a stock for $20.09 per share. The initial margin is 55%, and the maintenance margin is 28%. The price of the stock rises to $28.46 per share. What is the margin, and will there be a margin call? The margin in the account is。% (Round to the nearest percent)
An investor short sells 200 shares of a stock for $20.31 per share. The initial margin is 51%, and the maintenance margin is 26%. The price of the stock rises to $28.68 per share. Wha is the margin, and will there be a margin call? The margin in the account is 1%. Round to the nearest percent.)
An investor short sells 200 shares of a stock for $20 per share. The initial margin is 60%. How much equity will be initially required in the account to complete this transaction? In other words, what is the initial margin deposit? The initial margin deposit is $ (Round to the nearest dollar.)
An investor short sells 100 shares of a stock for S22 per share. The initial margin is 60%. How much equity will be initially required in he account to complete this transaction? In other words what is the initial margin deposit? The initial margin deposit is s (Round to the nearest dollar.)
HW SCUFU 1870, 90 20 P2.16 (similar to) Question Help An investor short sells 300 shares of a stock for $21 per share. The initial margin is 52%. How much equity will be initially required in the account to complete this words, what is the initial margin deposit? action in other The initial margin deposit is $ (Round to the nearest dollar) P2.12 (similar to) Question Help Jerri Kingston bought 100 shares of stock at $86.03 per share using an...
3. CL shares are selling at $71.40. An investor sells 1000 shares of CL short. The initial margin requirement is 35 percent, maintenance margin is 20%, and the commission is $4.95 per trade. After 180 days, the price goes down to $69.75 and the investor closes out the short position. While the investor is in the short position, CL pays $0.85 per share dividends. What is a. the annualized rate of return? b. the price at which there will be...
2) You sell short 100 shares of ABC stock at $40 per share. The initial margin is 50% and the maintenance margin is 40% How much do you post at the margin account as your initial margin per share? (20points) II) At what price will you get a margin call? (30points)
Most questions answered within 3 hours.
-
Why are polymers not typically casted into products?
asked 7 minutes ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 23 minutes ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 12 minutes ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 15 minutes ago -
Along an aggregate supply curve, if the level of output is less
than the natural level...
asked 16 minutes ago -
By 2025, annual consumption in emerging markets will total $30
trillion and contribute more than ________...
asked 21 minutes ago -
At what point does reformation cease to be a viable option for
those who are oppressed...
asked 25 minutes ago -
Place letters corresponding to amounts in the proper order for
lightest to heaviest samples:
a) 2100...
asked 29 minutes ago -
Consider the multicore processor with 6 heterogeneous cores
labelled C1, C2, C3, C4, C5, and C6....
asked 32 minutes ago -
Document system components according to standards and procedures
(Implement and hand over system components) IT administrative
asked 32 minutes ago -
The college asked 700 students if they wanted a longer spring
break and 600 students said...
asked 31 minutes ago -
Determine the temperature (in Celsius) at which 1.00 mole of an
ideal gas will have a...
asked 56 minutes ago