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 call?
2. You buy 400 shares of stock at a price of $37.79. The initial margin requirement is 50% and the maintenance margin is 30%. a. How much do you borrow? b. At what price will you first receive a margin call?
Homework Answers
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1. The price of Facebook stock is currently at $31.54 and you
decide to buy 120...
Indexes & Trading 1. The price of Facebook stock is currently at $56.51 and you decide...
Indexes & Trading
1. The price of Facebook stock is currently at $56.51
and you decide to buy 160 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 margin (as a decimal value)?
b. If the price rises to $60, and the interest you
have to pay on the broker's loan is 3%, what is the net return
(as a decimal value)?
c. If the...
The price of Facebook stock is currently at $56.51 and you decide to buy 130 shares...
The price of Facebook stock is currently at $56.51 and you decide to buy 130 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 margin (as a decimal value)? b.If the price rises to $60, and the interest you have to pay on the broker's loan is 1%, what is the net return (as a decimal value)? c.If the broker's maintenance margin is 40%, what is...
help please, The price of Facebook stock is currently $35.79 and you decide to buy 170...
help please,
The price of Facebook stock is currently $35.79 and you decide to buy 170 shares on margin. The inital margin is 60%. Part 1 Attempt 1/5 for 10 pts. How much money will you borrow from the broker if you borrow as much as possible? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. If the price falls to $31.33, what is the new percentage margin in the account? 2+ decimals Submit Part 3 Attempt 1/5 for...
You decide to buy 900 shares of stock at a price of $78 and an initial...
You decide to buy 900 shares of stock at a price of $78 and an initial margin of 70 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 40 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) price decline
You decide to buy 1,800 shares of stock at a price of $96 and an initial...
You decide to buy 1,800 shares of stock at a price of $96 and an initial margin of 55 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 30 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Stock price decline 5111 55H
You decide to buy 1,400 shares of stock at a price of $88 and an initial...
You decide to buy 1,400 shares of stock at a price of $88 and an initial margin of 70 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 35 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Do not include a minus sign. Omit the "%" sign in your response.) Stock price decline %
You decide to buy 1,200 shares of stock at a price of $84 and an initial...
You decide to buy 1,200 shares of stock at a price of $84 and an initial margin of 80 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 30 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Stock price decline 74.42 % %
1. You are bearish on Telecom stock and decide to sell short 100 shares at the...
1. You are bearish on Telecom stock and decide to sell short 100 shares at the current market price of $50 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
You are bullish on Telecom stock. The current market price is $50 per share, and you...
You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. Round your answer to two decimal places and enter the number without the...
Problem 2-7 Margin Calls (LO3, CFA5) You decide to buy 1700 shares of stock at a...
Problem 2-7 Margin Calls (LO3, CFA5) You decide to buy 1700 shares of stock at a price of $94 and an initial margin of 50 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 25 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Stock price decline
Indexes & Trading
1. The price of Facebook stock is currently at $56.51
and you decide to buy 160 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 margin (as a decimal value)?
b. If the price rises to $60, and the interest you
have to pay on the broker's loan is 3%, what is the net return
(as a decimal value)?
c. If the...
help please,
The price of Facebook stock is currently $35.79 and you decide to buy 170 shares on margin. The inital margin is 60%. Part 1 Attempt 1/5 for 10 pts. How much money will you borrow from the broker if you borrow as much as possible? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. If the price falls to $31.33, what is the new percentage margin in the account? 2+ decimals Submit Part 3 Attempt 1/5 for...
You decide to buy 900 shares of stock at a price of $78 and an initial margin of 70 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 40 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) price decline
You decide to buy 1,800 shares of stock at a price of $96 and an initial margin of 55 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 30 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Stock price decline 5111 55H
You decide to buy 1,200 shares of stock at a price of $84 and an initial margin of 80 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 30 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) X Answer is complete but not entirely correct. Stock price decline 74.42 % %
1. You are bearish on Telecom stock and decide to sell short 100 shares at the current market price of $50 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. Round your answer to two decimal places and enter the number without the...
Problem 2-7 Margin Calls (LO3, CFA5) You decide to buy 1700 shares of stock at a price of $94 and an initial margin of 50 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 25 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Stock price decline
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