Question

In: Finance

You are an investor who bought 100 shares of a company at $35 per share with...

You are an investor who bought 100 shares of a company at $35 per share with a stock on margin of 60%. The stock is now trading at $50 per share, and the initial margin require- ments has been lowered to 50%. You now want to buy 300 more shares of the stock. What is the minimum amount of equity that you will have to put up in this transaction?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

You bought 200 shares of Microsoft at $50 per share. 100 shares of IBM for $100...
You bought 200 shares of Microsoft at $50 per share. 100 shares of IBM for $100 per share, and $300 shares of Amazon. com for $35 per share. what is the portfolio weight on the Amazon.com holding?
1. Suppose that a person bought 100 shares of company X for 100 euros per share...
1. Suppose that a person bought 100 shares of company X for 100 euros per share on 01.01.2018. The commission fee charged on this transaction was 25 euros. This person kept these stocks for 2 years and sold his portfolio of company X stocks on 01.01.2020 for 121.55 euros per share. The commission fee charged on this transaction was 30 euros. During the holding period the investor received dividends 3.3 euros per share on 01.01.2019 and dividends 2.42 euros per...
Suppose you bought 100 shares of stock at an initial price of $37 per share. The...
Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. (1) What is your total dollar return on this investment? (2) What is the percentage return on the investment?
An investor shorts 100 shares of a stock at $52 per share with initial margin of...
An investor shorts 100 shares of a stock at $52 per share with initial margin of 50% and no interest. The maintenance margin is 30%. Suppose the closing prices for the stock over the next three days is $56, $60 and $58. What are the values for margin and equity in the investor’s account at the end of day three?
On January​ 1, 2013, an investor bought 300 shares of​ Gottahavit, Inc., for $51 per share....
On January​ 1, 2013, an investor bought 300 shares of​ Gottahavit, Inc., for $51 per share. On January​ 3, 2014, the investor sold the stock for $56 per share. The stock paid a quarterly dividend of ​$0.35 per share. How much​ (in $) did the investor earn on this investment​ and, assuming the investor is in the 33​%tax​ bracket, how much will she pay in income taxes on this​ transaction? Assume a preferential tax rate of​ 15% on dividends and...
On January​ 1, 2013, an investor bought 300 shares of​ Gottahavit, Inc., for $69 per share....
On January​ 1, 2013, an investor bought 300 shares of​ Gottahavit, Inc., for $69 per share. On January​ 3, 2014, the investor sold the stock for ​$74 per share. The stock paid a quarterly dividend of $0.24 per share. How much​(in $) did the investor earn on this investment​ and, assuming the investor is in the 33​% tax​ bracket, how much will she pay in income taxes on this​ transaction? Assume a preferential tax rate of​ 15% on dividends and...
An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the...
An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the maintance margin is 40% at what price does the investor get a margin call? Regarding the previous question, if the price declines to $70 per share whats the return to the investors equity? What if the stock price rises to $150 per share? ignore interest and transaction costs.
An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The...
An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The company declared and paid a dividend of Ghc2 per share during the year. The investor sold the stock for Ghc21 per share after the one year holding period. Calculate the cedi return from this investment. Calculate the HPR for this investment. Partition the HPR into its dividend and capital appreciation components.
An investor owns 5,000 shares of stock AB, which is currently trading at $100 per share....
An investor owns 5,000 shares of stock AB, which is currently trading at $100 per share. The investor is fearful of a sharp decrease of the stock price. He decides to buy 50 December 95 put option at a price of $3, paying $15,000.  Note: Each put option contract provides for the right to sell 100 shares of stock. December 95 put option means that the strike price of the put is 95 and it matures in December. If IBM stock...
An investor owns 5,000 shares of stock AB, which is currently trading at $100 per share....
An investor owns 5,000 shares of stock AB, which is currently trading at $100 per share. The investor is fearful of a sharp decrease of the stock price. He decides to buy 50 December 92 put option at a price of $3, paying $15,000. Note: Each put option contract provides for the right to sell 100 shares of stock. December 92 put option means that the strike price of the put is 92 and it matures in December. If IBM...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT