You have shorted 10 shares in a company at $98. The initial margin was 50% and...

You have shorted 10 shares in a company at $98. The initial margin was 50% and the maintenance margin is 30%. A few days after the transaction, the company paid $0.6 dividends and after another few days, the shares price went to $110. What is your percentage margin? Provide your answer in percent, rounded to two decimals, omitting the % sign.

Expert Solution

jeff jeffy answered 9 months ago

You decide to sell short 50 shares of Ford at $10 per share. The initial margin...

You decide to sell short 50 shares of Ford at $10 per share. The initial margin requirement is 50%. The maintenance margin is 40%. (Please show the work/equations!!! Thanks!) 1) How much cash (X) must we put into the brokerage account? 2) How high can the stock price be before a margin call? 3) Suppose stock price immediately declines to P = $9. What is the rate of return for this investor? 4) Suppose stock price immediately rises to P...

You shorted 600 shares of MMM for $105 per share using an inital margin of 80%....

You shorted 600 shares of MMM for $105 per share using an inital margin of 80%. At the moment the stock is trading for $99. What is your current margin (in %)?

You purchase 500 shares of Johns Incorporated at $50 per share using an initial margin of...

You purchase 500 shares of Johns Incorporated at $50 per share using an initial margin of 60%. Your maintenance margin is 25% and the minimum initial margin is 50%. A. How low can the stock price fall before you receive a margin call? B. If the stock price falls to $21 a share, how much additional equity must you add to your account?

assume you sell short 100 shares of common stock at 50 per share, with initial margin...

assume you sell short 100 shares of common stock at 50 per share, with initial margin at 50%, at what price you will receive a margin call from your broker ( assuming maintenance margin of 30%) answers- 42.26, 57.69, 62.00, 24.44 What is your rate of return in previous problem if you purchase the stock at $40 per share? answers- 40%, 60%, 25%, 18%

You shorted 1,000 shares of MSFT at $215 a share. You got a margin call sometime after 3 months.

You shorted 1,000 shares of MSFT at $215 a share. You got a margin call sometime after 3 months. The MM is 35%. What must be the stock price?----- Nothing is missing, all info is here.

At what price will you get a margin call if the maintenance margin is 30%? Initial margin = 50%

You have opened a stock portfolio account with a brokerage firm. You have only purchased stocks of Home Depot. You purchased 200 shares of HD at $178/share.At what price will you get a margin call if the maintenance margin is 30%? Initial margin = 50%

A trader shorts 274 shares of OverPriced.com at $13.81 pershare. Initial margin requirements are 50%....

A trader shorts 274 shares of OverPriced.com at $13.81 per share. Initial margin requirements are 50%. The trader closes the position at a price of $31.64. What is the holding period return for the trade?

You want to buy 50 shares of stock at $60 per share. You have a margin account.

A. You want to buy 50 shares of stock at $60 per share. You have a margin account. The initial margin is 60% and the maintenance margin is 35%. Calculate the maximum amount of cash you may borrow to be able to make this purchase. B. You want to buy 50 shares of stock at $60 per share. You borrow $1,000 on margin. The initial margin is 60% and the maintenance margin is 35%. Calculate the price below which...

1. A margin account requires an initial margin of 50% and a margin call will occur...

1. A margin account requires an initial margin of 50% and a margin call will occur if the stock price depreciates to $13.33. If stocks were initially purchased at $20, the maintenance margin is closest to: A.50% B.67% C.25% 2. If an insider cannot take advantage and trade on private information to make abnormal profits, then a market is likely to be considered : A. strong form efficient B.weak form efficient and semi strong form efficient only C.only semi...

You purchased 250 shares of common stock on margin for $45 per share. The initial margin...

You purchased 250 shares of common stock on margin for $45 per share. The initial margin is 60%, and the stock pays no dividend. Your rate of return would be ________ if you sell the stock at $48 per share. Ignore interest on margin. 0.132 0.238 0.111 0.208

Question