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16) Todd has a margin account with $17,400 in available cash. The initial margin is 70 percent and the maintenance margin is 30 percent. What is the maximum number of shares he can purchase if the pri...
16) Todd has a margin account with $17,400 in available cash. The initial margin is 70 percent and the maintenance margin is 30 percent. What is the maximum number of shares he can purchase if the price per share is $44? 17) Aaron purchased 300 shares of a technology stock for $16.80 a share. The initial margin requirement on this stock is 85 percent and the maintenance margin is 60 percent. What is the lowest the stock price can go...
1)You purchased 500 shares of stock for $28.50 a share. The initial margin requirement is 65...
1)You purchased 500 shares of stock for $28.50 a share. The initial margin requirement is 65 percent and the maintenance margin is 35 percent. What is the maximum percentage decrease that can occur in the stock price before you receive a margin call? Group of answer choices 38 percent 62 percent 57 percent 46 percent 35 percent 2)You recently purchased 200 shares of stock at a cost per share of $32.50. The initial margin requirement on this stock is 75...
You’ve borrowed $20,000 on margin to buy shares in Disney, which is now selling at $40...
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...
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...
1. The price of Facebook stock is currently at $31.54 and you decide to buy 120...
1. The price of Facebook stock is currently at $31.54 and you decide to buy 120 shares on margin. You borrow $1,500 from your broker and finance the remainder of the purchase with your own cash. a. What is your initial percentage margin? b. If the price rises to $35, what is the net return? c. If the broker's maintenance margin is 40%, what is the minimum value that Facebook stock price can take before you are issued a margin...
5. Margin Calls (LO3, CFA4) You buy 500 shares of stock at a price of $38...
5. Margin Calls (LO3, CFA4) You buy 500 shares of stock at a price of $38 and an initial margin of 60 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call? 6. Margin Calls on Short Sales (L04, CFA5) You short sold 1,000 shares of stock at a price of S36 and an initial margin of 55 percent. If the maintenance margin is 35 percent, at what share price will you receive...
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...
need help with questions 3,4,5,6 please You have purchased 500 shares of MSFT (Microsoft) at $100...
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...
You’ve borrowed $42,000 on margin to buy shares in Ixnay, which is now selling at $42.2...
You’ve borrowed $42,000 on margin to buy shares in Ixnay, which is now selling at $42.2 per share. You invest 1,220 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price changes to $46 per share. a. Will you receive a margin call? Yes No b. At what price will you receive a margin call? (Round your answer to 2 decimal places.) rev: 02_06_2019_QC_CS-156769, 08_10_2019_QC_CS-174777
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...
5. Margin Calls (LO3, CFA4) You buy 500 shares of stock at a price of $38 and an initial margin of 60 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call? 6. Margin Calls on Short Sales (L04, CFA5) You short sold 1,000 shares of stock at a price of S36 and an initial margin of 55 percent. If the maintenance margin is 35 percent, at what share price will you receive...
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...
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...
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