Assume that you just short sold 300 shares of Spencer stock at $120 per share. The initial margin requirement (IMR...
Assume that you just short sold 300 shares of Spencer stock at $120 per share. The initial margin requirement (IMR) is 50 percent and the maintenance margin requirement (MMR) is 30 percent. b. What will be your rate of return if the stock price goes to $127 per share over the next 60 days and you close your position at the end of that time? (7 pts)
Assume that you just short sold 300 shares of Spencer stock at $120 per share. The initial margin requirement (IMR) is 50 percent and the maintenance margin requirement (MMR) is 30 percent a. What is the margin deposit required for this transaction? (6 pts) b. What will be your rate of return if the stock price goes to $127 per share over the next 60 days and you close your position at the end of that time? (7 pts)
Assume that you just short sold 300 shares of Spencer stock at $120 per share. The initial margin requirement (IMR) is 50 percent and the maintenance margin requirement (MMR) is 30 percent. (7 pts) What price would trigger a margin call? c.
You short sold 700 shares of a stock at $25 a share. The initial margin requirement is 75 percent and the maintenance margin is 35 percent. What is the amount of your total liability for this transaction as initially shown on your account balance sheet?
You just sold 1,200 shares of stock short at a price per share of $13.50. The initial margin requirement is 60 percent and the maintenance margin is 30 percent. What is your initial equity position? $6,480 $7,520 $9,720 $10,520 $16,200
You sold short 1,000 shares of a stock at $46 per share. The initial margin is 50%. a) At what stock price would you receive a margin call if the maintenance margin is 35%? (do not consider dividends in question a) b) Assume that the stock paid a $0.25 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $40 per share at the end of the quarter?
You sold short 100 shares of Macy's, Inc. common stock on margin at $29.78 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $17.00, and it has paid cash dividends of $1.51 per share. What is your return on equity? Ignore margin interest.
Assume you sold short 100 shares of common stock at $70 per share. The initial margin is 50%. what would be the maintenance margin if a margin call is made at a price of $85? a.40.5% b.20.5% c.35.5% d.23.5%
You short sold 750 shares of stock at $64 per share at an initial margin of 75%.The maintenance margin is 35%. What is the highest the stock price can go before you receive a margin call? (Express your solution to two decimals of accuracy.)
An investor short sells 200 shares of a stock for $20 per share. The initial margin is 60%. How much equity will be initially required in the account to complete this transaction? In other words, what is the initial margin deposit? The initial margin deposit is $ (Round to the nearest dollar.)