1. An investor purchases 2000 shares of a stock with a market price of $48/share on...
1. An investor purchases 2000 shares of a stock with a market price of $48/share on a 50% margin (i.e., takes a 50% cash loan from the broker.) The investor is required to maintain a 50% maintenance margin.
A. What is the investor's margin if the price of the stock increase to $53/share?
B. If the price of the stock drops to $43 / share, what is the investor's margin?
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1. An investor purchases 2000 shares of a stock with a market
price of $48/share on...
An investor buys $15 thousand dollars of ABT stock at $20 per share, using 59% initial...
An investor buys $15 thousand dollars of ABT stock at $20 per share, using 59% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.57 per share dividend each year. If the stock is sold at the end of the year at $21 per share, what is the investor's rate of return? You sell short 200 shares of BSX at $50 per share. You post the 50% margin...
QUESTION 5 An investor buys $19 thousand dollars of ABT stock at $20 per share, using...
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An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the...
An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $.50-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return? 17.5% 19.67% 23.83% D. 25.75%
(3) An investor buys $8,000 worth of a stock priced at $40 per share using 50%...
(3) An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 6% on the margin loan and requires a 30% maintenance margin. In one year the investor has interest payable and gets a margin call. What is the stock price that triggers the margin call? How much additional cash should the investor put in his account to restore the 50% initial margin after receiving the margin call? Suppose that the...
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial...
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places.
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial...
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places
An investor short sells 400 shares of a stock for $ 20.62 per share. The initial...
An investor short sells 400 shares of a stock for $ 20.62 per share. The initial margin is 50 %, and the maintenance margin is 29 %. The price of the stock rises to $ 29.95 per share. What is the margin, and will there be a margin call? The margin in the account is _______________%. (Round to the nearest percent.)
When an investor purchases a share of stock at $50 and the stock tumbles to $35,...
When an investor purchases a share of stock at $50 and the stock tumbles to $35, the investor with loss aversion prefers to: A) sell the stock at $35 and use the proceeds to make a better investment. B) keep the stock and avoid the losses, at least until the price returns to $50. C) buy more shares at 35 dollars. D) leave the stock market.
Dée trailer opens a brokerage account and purchases 100 Shares of Internet dreams that $60 per...
Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...
Question 27 (Mandatory) (1 point) Proper Trader lingo :-) $13 per share and at the $210...
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...
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...
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places.
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places
Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...
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...
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