Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.
$20,000
$12,000
$8,000
D.$15,000
Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin i...
Assume you purchased 600 shares of XYZ common stock on margin at $35 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________.
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 sold short 200 shares of XYZ common stock at $40 per share. What is the minimum amount you must place with your broker? A) 4000 B) 2400 C) 8000 D) 5600
You purchased 50 shares of PPI common stock on margin at $100 per share. Assume the initial margin is 60% and the maintenance margin is 30%. Below what stock price level by the year end would you get a margin call? The call loan rate is 2% per year. O a) $49.67 Ob) $58.29 O c) $44.97 O d) $52.86
You buy 100 shares of stock XYZ at $50/share on margin. Your broker makes you deposit 50% of the cost into your margin account and you borrow the remaining 50% from your broker at 0% interest. When you close out your position, you sell all 100 shares of XYZ for $45 dollars and repay the loan. What was your return on the investment? (it's not -10%)
You purchased 200 shares of CNX common stock on margin at $51 per share. Assume the initial margin is 50% and the maintenance margin is 34%. You will get a margin call if the stock drops below ________. Assume the stock pays no dividends, and you pay no interest on the margin loan. PLEASE SHOW WORK
You purchase 547 shares of stock on margin for $48 per share. Your broker requires you to post a 65% initial margin. What much money will you need to borrow from the broker? (Express your solution as a decimal with two digits of accuracy.)
Assume you sell short 100 shares of common stock at $18 per share, with initial margin at 54%. What would be your rate of return if you repurchase the stock at $35 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. Answer in percentages, for example if the answer is 43.51%, answer 43.51, and remember to use a dot as a decimal separator Clarification:...
You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $172.58. If the broker’s call loan rate is 2.00%, what is your return on equity? Note that Facebook pays no dividends.
You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. 1) Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. (15 pts) 2) Suppose that, unfortunately, the stock price drops to $48. You decide to put some additional cash to restore the margin. How much cash you need to inject to restore...