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Ch 3, Question 13 Here is some price information on Marriott Marriot 39.95 40.05 Bid Ask...
You’ve borrowed $20,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share. Will you receive a margin call? (Hint: Use the statement "Your account starts at the initial margin requirement of 50%" to figure out how many Disney shares you purchased.) How far can the price of Disney...
You've borrowed $20,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share. 2. Will you receive a margin call? (Hint: Use the statement "Your account starts at the initial margin requirement of 50%" to figure out how many Disney shares you purchased.) How far can the price of...
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?
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...
. On January 1, you tell your broker to sell short 500 shares of Apple Inc. stock at a price of $100 per share. You use $30,000 cash to serve as a margin. (a) (5 points) How high can the stock price go before you get a margin call if the maintenance margin is 50%? (b) Assume that on April 1, a dividend of $4 per share was paid. On May 1, you covered the short sale by buying the...
Question 1 (20 points) Suppose you wish to sell short 150 shares of Boeing Co (NYSE BA). The current selling price per share is $30. The initial margin requirement for the short sell is 40%. The broker requires a 35% maintenance margin, please calculate the stock price that will trigger a margin call.
Question 6: 6. You sell short 250 shares of BNO that are currently selling at $72 per share. You post the 50% margin required on the short sale. BNO stock does not pay dividends. Assume that you earn no interest on the funds in your margin account. If your broker requires a 40% maintenance margin, at what stock price will you get a margin call? or (Circle one: higher, lower). Answer: I will get a margin call if the stock...
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...
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...
The following financial information is given for Hilton & Marriott: Hilton Marriott Closing Stock Price, October 8, 2002 10.54 27.46 EPS (actual for 2001) 0.45 0.92 EPS (forecast for 2002) 0.51 1.83 Dividend per share 0.08 0.28 5 year forecast earnings growth rate 15.1% 15.7% Common shares outstanding (thousands) 376,025 241,801 Given the October 8 stock prices: a. Based on actual EPS Marriott has a higher PE than Hilton b. Based on either actual or forecast EPS, Marriott has a...