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the answer for 23 is option c. then how to solve question 24
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23. You...
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.
please answer 23 and 24 Canvas Question 23 & 24 are based on the following information:...
please answer 23 and 24
Canvas Question 23 & 24 are based on the following information: Suppose a stock now sells at $110, and the price will either increase by a factor of u-1.10 or fall by a factor of d-o90 by the end of six-month period. You buy a few shares and to ensure a guaranteed payoff from your stock holding you also write a few call options with exercise price of $110. What would be the hedge ratio...
Question 1 You purchased shares of Broussard Company using 50 percent margin; you invested a total...
Question 1 You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss if the stock price rises to $23 a share (ignore borrowing costs, dividends, and taxes). 25% 27% 10% O 30% Click if you would like to Show Work for this question: Open Show Work LINK TO...
You sold short 100 shares of Macy's, Inc. common stock on margin at $29.78 per share....
You sold short 100 shares of Macy's, Inc. common stock on margin at $29.78 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $17.00, and it has paid cash dividends of $1.51 per share. What is your return on equity? Ignore margin interest.
QUESTION 5 An investor buys $19 thousand dollars of ABT stock at $20 per share, using...
QUESTION 5 An investor buys $19 thousand dollars of ABT stock at $20 per share, using 52% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.5 per share dividend each year. If the stock is sold at the end of the year at $22 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places. QUESTION 6 You sell short...
You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per...
You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $59.61, and it has paid cash dividends of $2.50 per share. What is your return on equity? Ignore margin interest.
Question 27 (Mandatory) (1 point) Proper Trader lingo :-) $13 per share and at the $210...
Question 27 (Mandatory) (1 point) Proper Trader lingo :-) $13 per share and at the $210 per share. Jack is getting ready to purchase 100 shares of GE same time he intends to sell 50 shares of Apple for; for at; at for; at at; for Question 24 (Mandatory) (1 point) Saved If you place a stop-loss order to sell 100 shares of stock at $55 when the current price is $62, how much will you receive for each share...
1. You opened a margin account with borrowing $50,000 from your broker a year ago. Your...
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...
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...
Question #6: Margin [26 Points] Use the following scenario to answer Parts (a) - (c) You...
Question #6: Margin [26 Points] Use the following scenario to answer Parts (a) - (c) You open up a trading account with Merrill Lynch and purchase 800 shares of Southwest Airlines (LUV) at $54.32 per share. Suppose that the initial margin percentage is 60% and that your broker charges you a margin interest rate of 5.0%. (a) What is the amount that you must deposit into your account in order to buy 800 shares of Southwest Airlines on margin? [4...
please answer 23 and 24
Canvas Question 23 & 24 are based on the following information: Suppose a stock now sells at $110, and the price will either increase by a factor of u-1.10 or fall by a factor of d-o90 by the end of six-month period. You buy a few shares and to ensure a guaranteed payoff from your stock holding you also write a few call options with exercise price of $110. What would be the hedge ratio...
Question 1 You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss if the stock price rises to $23 a share (ignore borrowing costs, dividends, and taxes). 25% 27% 10% O 30% Click if you would like to Show Work for this question: Open Show Work LINK TO...
QUESTION 5 An investor buys $19 thousand dollars of ABT stock at $20 per share, using 52% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.5 per share dividend each year. If the stock is sold at the end of the year at $22 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places. QUESTION 6 You sell short...
Question 27 (Mandatory) (1 point) Proper Trader lingo :-) $13 per share and at the $210 per share. Jack is getting ready to purchase 100 shares of GE same time he intends to sell 50 shares of Apple for; for at; at for; at at; for Question 24 (Mandatory) (1 point) Saved If you place a stop-loss order to sell 100 shares of stock at $55 when the current price is $62, how much will you receive for each share...
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...
Question #6: Margin [26 Points] Use the following scenario to answer Parts (a) - (c) You open up a trading account with Merrill Lynch and purchase 800 shares of Southwest Airlines (LUV) at $54.32 per share. Suppose that the initial margin percentage is 60% and that your broker charges you a margin interest rate of 5.0%. (a) What is the amount that you must deposit into your account in order to buy 800 shares of Southwest Airlines on margin? [4...
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