Alfonso purchased 700 shares of Crosswinds, Inc., stock on 60percent margin when the stock was...

Alfonso purchased 700 shares of Crosswinds, Inc., stock on 60 percent margin when the stock was selling for $38.5 a share. The stock is currently selling for $33.8 a share. What is his current equity position? Enter your answer to the nearest dollar. Do not include a $ sign or a comma in your answer.

Expert Solution

total cost of shares = 700*38.5 = 26950

Amount of Margin to be deposited = 26950*60% = 16170

Current Equity Position = (Cuurent Price-Buying Price)*No of Share

=(33.8-38.5)*700

=(-3290)

that means he is facing the loss of $3,290

Balance in the margin Account = 16170-3290 = $12,880

jeff jeffy answered 2 years ago

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