Homework Answers
Solution:-
If an investor wants to short sell 100 shares of IBM at a price of $135 per share, it means the total transaction value is as follows:
Total transaction value= No. of shares*price per share
Total transaction value= 100*135 = $13,500
Cash required in margin account= Total transaction value*margin % requirement
Cash required in margin account= 13,500*50% = $6,750
Thus the investor would require $6,750 at the beginning of transaction as his own cash in the margin account and the correct option is option (b).
Add Answer to:
12. You short sell 100 shares of IBM at a price $135. You use the maximum...
Suppose you short-sell 100 shares of IBM, now selling at $120 per share. a. What is...
Suppose you short-sell 100 shares of IBM, now selling at $120 per share. a. What is your maximum possible loss per share? b. What happens to the maximum loss if you simultaneously place a stop-buy order at $128?
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 $36 per share. a. 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? X Answer is complete but not entirely correct. Initial margin $ 5,000 b. How high can the price of the stock go before you get a margin call if the...
You are bearish on a technology stock and decide to sell short 100 shares at the...
You are bearish on a technology stock and decide to sell short 100 shares at the current market price of $36.00 per share. a.) 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 b.) How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
1. You are bearish on Telecom stock and decide to sell short 100 shares at the...
1. You are bearish on Telecom stock and decide to sell short 100 shares at the current market price of $50 per share. a. 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? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
Help Save & You are bearish on Telecom and decide to sell short 100 shares at...
Help Save & You are bearish on Telecom and decide to sell short 100 shares at the current market price of $33 per share. a. 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? Initial margin b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value...
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 $49 per share a. 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? Initial margin b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $45 per share. a. How muc...
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $45 per share. a. 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? Initial margin b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
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...
Question 4 (1 point) You are bearish on Telecom and decide to sell short 100 shares...
Question 4 (1 point) 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...
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 are bearish on Telecom and decide to sell short 100 shares at the current market price of $36 per share. a. 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? X Answer is complete but not entirely correct. Initial margin $ 5,000 b. How high can the price of the stock go before you get a margin call if the...
1. You are bearish on Telecom stock and decide to sell short 100 shares at the current market price of $50 per share. a. 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? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
Help Save & You are bearish on Telecom and decide to sell short 100 shares at the current market price of $33 per share. a. 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? Initial margin b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value...
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $49 per share a. 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? Initial margin b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $45 per share. a. 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? Initial margin b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
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...
Question 4 (1 point) 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...
Most questions answered within 3 hours.
-
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 8 seconds from now -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 23 minutes ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 1 hour ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 1 hour ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 2 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 2 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 3 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 4 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 5 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 5 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 5 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 5 hours ago