The stock price of Apple is $102. You have $10,000 to invest. The monthly interest rate...
The stock price of Apple is $102. You have $10,000 to invest. The monthly interest rate is 0.1%.
Part 1
You think the stock price will go up soon, and want to trade 127 shares. What should you do? Enter 127 for buying 127 shares (on margin if necessary), or -127 for selling or short-selling 127 shares.
Part 2
What is your initial percentage margin (entered as a decimal number)?
Part 3
Two months later, the stock price is $122. What is your percentage margin (entered as a decimal number)?
Homework Answers
Request Answer!
We need at least 9 more requests to produce the answer.
1 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
The stock price of Apple is $102. You have $10,000 to invest.
The monthly interest rate...
The stock price of Google is $587. You have $10,000 to invest. The monthly interest rate...
The stock price of Google is $587. You have $10,000 to invest. The monthly interest rate is 0.5%. a. You think the stock price will go down soon, and want to trade 20 shares. What should you do? Enter 20 for buying 20 shares (on margin if necessary), or -20 for selling or short-selling 20 shares. b. If the initial margin is 50%, what is the minimum additional dollar amount that you have to deposit in your brokerage account? c....
Suppose you think Apple stock is going to appreciate substantially in value in the next year....
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Se, is $40, and a call option expiring in one year has an exercise price, X, of $40 and is selling at a price, C, of $15. With $15,000 to invest, you are considering three alternatives. a. Invest all $15,000 in the stock, buying 375 shares. b. Invest all $15,000 in 1,000 options (10 contracts). c. Buy 100 options...
Suppose you think Apple stock is going to appreciate substantially in value in the next year....
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Se, is $50, and a call option expiring in one year has an exercise price, X, of $50 and is selling at a price, C, of $16. With $20,800 to invest, you are considering three alternatives. a. Invest all $20,800 in the stock, buying 416 shares. b. Invest all $20,800 in 1,300 options (13 contracts). c. Buy 100 options...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Sa, is $125, and a call option expiring in one year has an exercise pr...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Sa, is $125, and a call option expiring in one year has an exercise price, X, of $125 and is selling at a price, C, of $13. With $39,000 to invest, you are considering three alternatives. a. Invest all $39,000 in the stock, buying 312 shares. b. Invest all $39,000 in 3,000 options (30 contracts) c Buy 100 options...
Suppose you think Apple stock is going to appreciate substantially in value in the next year....
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, is $50, and a call option expiring in one year has an exercise price, X, of $50 and is selling at a price, C, of $9. With $18,900 to invest, you are considering three alternatives. Clarification: Calculate the value of the options assuming that you exercise them when you calculate the portfolio value (i.e. six months from now)...
Suppose you think Apple stock is going to appreciate substantially in value in the next year....
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, Is $125, taly in value in the next yearSay the stock is current price, Sof $125, and a call option expiring in one year has an exercise price, X, of $125 and is selling at a price, C, of $8. With $16,000 to Invest, you are considering three alternatives. a. Invest all $16,000 in the stock, buying 128...
The current price of a stock is $25 per share. You have $10,000 to invest. You...
The current price of a stock is $25 per share. You have $10,000 to invest. You borrow an additional $10,000 from your broker and invest $20,000 in the stock. If the maintenance margin is 30 percent, at what price will a margin call first occur? Select one: A. $19.71. B. $17.86. C. $9.62.
The stock price of Apple is $102. You have $10,000 to invest. The monthly interest rate is 0.1%.
You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per...
You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 55 cents per share. One year later (i.e. two years from now), you sell your shares for $32. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Omit the % sign in your response....
. On January 1, you tell your broker to sell short 500 shares of Apple Inc....
. 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...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Se, is $40, and a call option expiring in one year has an exercise price, X, of $40 and is selling at a price, C, of $15. With $15,000 to invest, you are considering three alternatives. a. Invest all $15,000 in the stock, buying 375 shares. b. Invest all $15,000 in 1,000 options (10 contracts). c. Buy 100 options...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Se, is $50, and a call option expiring in one year has an exercise price, X, of $50 and is selling at a price, C, of $16. With $20,800 to invest, you are considering three alternatives. a. Invest all $20,800 in the stock, buying 416 shares. b. Invest all $20,800 in 1,300 options (13 contracts). c. Buy 100 options...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, Sa, is $125, and a call option expiring in one year has an exercise price, X, of $125 and is selling at a price, C, of $13. With $39,000 to invest, you are considering three alternatives. a. Invest all $39,000 in the stock, buying 312 shares. b. Invest all $39,000 in 3,000 options (30 contracts) c Buy 100 options...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, is $50, and a call option expiring in one year has an exercise price, X, of $50 and is selling at a price, C, of $9. With $18,900 to invest, you are considering three alternatives. Clarification: Calculate the value of the options assuming that you exercise them when you calculate the portfolio value (i.e. six months from now)...
Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock's current price, So, Is $125, taly in value in the next yearSay the stock is current price, Sof $125, and a call option expiring in one year has an exercise price, X, of $125 and is selling at a price, C, of $8. With $16,000 to Invest, you are considering three alternatives. a. Invest all $16,000 in the stock, buying 128...
Most questions answered within 3 hours.
-
With a $16 Trillion national ebt, and projected annual budget
eficits in excess of $1 Trillion...
asked 9 minutes ago -
A machine shop owner wishes to assign each of three machinists
(labeled 1, 2, and 3)...
asked 24 minutes ago -
Regarding language development, which of the following
statements is FALSE?
Babies are able to cry from...
asked 23 minutes ago -
A couple of small ice cubes at 0 °C are added to glass of warm
water...
asked 21 minutes ago -
Slow 'n Steady, Inc., has a stock price of $30, will pay a
dividend next year...
asked 25 minutes ago -
During the current financial year, the owner of Omega
Enterprises withdrew supplies of $2,000 for personal...
asked 21 minutes ago -
PLEASE SHOW MATH CALCULATION(formulas)it has to be done on excel
P12-4 Last year (2016), Richter Condos...
asked 29 minutes ago -
A 0.25μF capacitor is charged to 50 V . It is then connected in
series with...
asked 45 minutes ago -
Calculate the current, I, through the batteries for:
- a 2-bulb parallel circuit
- How does...
asked 47 minutes ago -
Choose the sentence that uses correct punctuation.
1a. The prefatory parts of a report include the...
asked 53 minutes ago -
For the element arsenic, which one of the following sets of
quantum numbers could not apply...
asked 1 hour ago -
Compare and contrast the architectures of 3 types of ADCs:
Flash, SAR, and pipelined. Use the...
asked 1 hour ago