HW SCUFU 1870, 90 20 P2.16 (similar to) Question Help An investor short sells 300 shares...

Question

Question

Answer 1

Answer #1

Solution: Q1 Initial margin deposit Shares*Price*initial margin % 300*21*52% 3276 02 Price for margin call on long position=B

Answer 2

Similar Homework Help Questions

8) Jerri Kingston bought 100 shares of stock at $100 per share using an initial margin...

8) Jerri Kingston bought 100 shares of stock at $100 per share using an initial margin of 7070. Given a maintenance margin of 50%, how far does the stock have to drop before Jerri faces a margin call? (Assume that there are no other securities in the margin account.)
Jerri Kingston bought 100 shares o stock at S86 84 per share, using an nit a...

Jerri Kingston bought 100 shares o stock at S86 84 per share, using an nit a margin o 53%. Glven a ma tenance margin o 32%, how ar does he stock have o drop be re Jer aces a margin cal ? Assume that there are no other securit es n the margin account. Before Jerri faces a margin call, the stack has to drop to Sper share (Raund to the nearest cent
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 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 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 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.)

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 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.)
P2.13 (similar to) -Question Help * An investor buys 200 shares of stock selling at $90...

P2.13 (similar to) -Question Help * An investor buys 200 shares of stock selling at $90 per share using a margin of 62% The stock pays annual dividends of $2 00 per share A margin loan can be obtained at an annual interest cost of 8.4%. Determine what return on invested capital the investor will realize if the price of the stock increases to $107 within six months. What is the annualized rate of return on this transaction? If the...

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...