ZuoTi.Pro
Question

The stock of Flop Industries is trading at $35. You feel the stock price will decline,...

The stock of Flop Industries is trading at $35. You feel the stock price will decline, so you short 300 shares at an initial margin of 55 percent. If the maintenance margin is 25 percent, at what share price will you receive a margin call?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
The stock of Flop Industries is trading at $35. You feel the stock price will decline,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The stock of Flop Industries is trading at $52. You feel the stock price will decline,...

    The stock of Flop Industries is trading at $52. You feel the stock price will decline, so you short 450 shares at an initial margin of 70 percent. If the maintenance margin is 35 percent, at what share price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Margin call price

  • The stock of Flop Industries is trading at $29. You feel the stock price will decline,...

    The stock of Flop Industries is trading at $29. You feel the stock price will decline, so you short 1,300 shares at an initial margin of 50 percent. If the maintenance margin is 35 percent, at what share price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)   Margin call price $   

  • The stock of Flop Industries is trading at $50. You feel the stock price will decline,...

    The stock of Flop Industries is trading at $50. You feel the stock price will decline, so you short 350 shares at an initial margin of 75 percent. If the maintenance margin is 40 percent, at what share price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places.) MArgind Call Price:

  • You short sold 650 shares of stock at a price of $35 and an initial margin...

    You short sold 650 shares of stock at a price of $35 and an initial margin of 70 percent. If the maintenance margin is 40 percent, at what share price will you receive a margin call? What is your account equity at this stock price? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin call price Account equity

  • 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

  • 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...

  • Today you short sell 500 shares of Stock Z, which is trading at $30 per share.  Stock...

    Today you short sell 500 shares of Stock Z, which is trading at $30 per share.  Stock Z does not pay any dividend, and the interest rate is 0%. (a) The initial margin is 40%.  What is the amount of equity in your account? (b) A day later you receive a margin call, when the price is $40.  What is the maintenance margin?  (You will not receive a margin call if the price is $39.99.) (c) When you receive the margin call at $40,...

  • 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 short sold 500 shares of stock at a price of 36 dollars and an inital...

    You short sold 500 shares of stock at a price of 36 dollars and an inital margin of 75 percent. if the maintenance margin is 25 percent, at what share price will you receive a margin call? what is your account equity at this stock price? Margin call price? Account equity?

  • Jennifer believes that Northern Wine stock is going to decline in value so she is short...

    Jennifer believes that Northern Wine stock is going to decline in value so she is short selling 1,000 shares at $32 a share. Her initial margin requirement is 70 percent and the maintenance margin is 30 percent. What is the highest the stock price can go before she receives a margin call? $38.97 $40.15 $41.85 $43.75 $45.77

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT