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 before he receives a margin call?
18) Five months ago, you purchased 400 shares of stock on margin. The initial margin requirement on your account is 60 percent and the maintenance margin is 30 percent. The call money rate is 4.8 percent, plus 1.85 percent premium. The purchase price was $16 a share. Today, you sold these shares for $18.00 each. What is your holding period rate of return
Homework Answers
1.
=17400/(70%*44)=564.9350649
2.
(300*P-(300*16.80*15%))/(300*P)<=60%
=>P<=6.296063
3.
=(400*18-400*16-400*16*(1-60%)*(4.8%+1.85%))/(400*16*60%)=16.400%
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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...
You have just purchased 200 shares of stock on margin at $60 per share. The broker...
You have just purchased 200 shares of stock on margin at $60 per share. The broker lent you $5,000 to help pay for the purchase. a. The initial margin in the account at the time you purchased the stock is 7000 b. If the share price falls to $35 per share, the remaining margin in the account is ______ c. If the maintenance margin requirement is 35%, the amount of the margin call will be _____
You short sold 1,200 shares of stock at a price of $30 and an initial margin...
You short sold 1,200 shares of stock at a price of $30 and an initial margin of 75 percent. If the maintenance margin is 30 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 2 decimal places required.
Allan purchased 500 shares of stock on margin for $31.75 a share and sold the shares...
Allan purchased 500 shares of stock on margin for $31.75 a share and sold the shares five months later for $34.50 a share. The initial margin requirement was 65 percent and the maintenance margin was 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return?
You short sold 350 shares of stock at a price of $32 and an initial margin...
You short sold 350 shares of stock at a price of $32 and an initial margin of 60 percent. If the maintenance margin is 30 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
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...
Suppose you purchase 950 shares of stock at $63 per share with an initial cash investment...
Suppose you purchase 950 shares of stock at $63 per share with an initial cash investment of $31,225. If your broker requires a maintenance margin of 30 percent, at what share price will you be subject to a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Margin call price
23. Today, you are purchasing 100 shares of stock on margin. The purchase price per share...
23. Today, you are purchasing 100 shares of stock on margin. The purchase price per share is $35. The initial margin requirement is 70 percent and the maintenance margin is 30 percent. The call money rate is 4.5 percent and you are charged 1.6 percent over that rate. What will your rate of return be if you sell your shares one year from now for $37 a share? Ignore dividends. A. 5.55 percent B. 6.42 percent C. 7.18 percent D....
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...
es of stock at a price of $35 and an initial margin of 70 percent. If...
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5. Margin Calls (LO3, CFA4) You buy 500 shares of stock at a price of $38...
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You short sold 350 shares of stock at a price of $32 and an initial margin of 60 percent. If the maintenance margin is 30 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
Suppose you purchase 950 shares of stock at $63 per share with an initial cash investment of $31,225. If your broker requires a maintenance margin of 30 percent, at what share price will you be subject to a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Margin call price
es 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 calculations. Round your answers to 2 decimal places.) account calculations. Round your answers to 2 decimal plac esyour ccount equlity at this stock price? (Do not round intermediate Margin call price Account equity
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...
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