You short-sell 400 shares of Rock Creek Fly Fishing Co., now selling for $52 per share....

You short-sell 400 shares of Rock Creek Fly Fishing Co., now selling for $52 per share. If you want to limit your loss to $2,400, you should place a stop-buy order at ________.

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

You sell short 400 shares of Apple that are currently selling at $200 per share. You...

You sell short 400 shares of Apple that are currently selling at $200 per share. You post the 60% margin required on the short sale, and the maintenance margin requirement is 25%. At what price would you receive a margin call (assume the margin call happens immediately). $240 $248 $256 $260 None of the above You short-sell 10 shares of Amazon.com, Inc today. The stock price is $2,000 per share. What is your maximum possible gain of this trade when...

Suppose you short-sell 100 shares of IBM, now selling at $200 per share.

Suppose you short-sell 100 shares of IBM, now selling at $200 per share. a. What is your maximum possible loss? b. What happens to the maximum loss if you simultaneously place a stop-buy order at $210? 2. Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $40. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50,...

Suppose you short-sell 100 shares of IBM, now selling at $178 per share. a. What is...

Suppose you short-sell 100 shares of IBM, now selling at $178 per share. a. What is your maximum possible loss? Maximum possible loss are (Click to select)178unlimited0 b. What happens to the maximum loss if you simultaneously place a stop-buy order at $192.50? (Do not round intermediate calculations. Input the amount as a positive value.) Maximum loss $

Suppose that you sell short 500 shares of Intel, currently selling for $70 per share, and...

Suppose that you sell short 500 shares of Intel, currently selling for $70 per share, and give your broker $25,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Intel stock is selling at: (i) $74; (ii) $70; (iii) $66? Assume that Intel pays no dividends. (i) Rate of return % (ii) Rate of return % (iii)...

Suppose that you sell short 500 shares of Xtel, currently selling for $70 per share, and...

Suppose that you sell short 500 shares of Xtel, currently selling for $70 per share, and give your broker $25,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $74; (ii) $70; (iii) $66? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values...

Suppose that you sell short 200 shares of Xtel, currently selling for $80 per share, and...

Suppose that you sell short 200 shares of Xtel, currently selling for $80 per share, and give your broker $10,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $85; (ii) $80; (iii) $75? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values...

Suppose that you sell short 500 shares of XYZ, currently selling for $40 per share, and...

Suppose that you sell short 500 shares of XYZ, currently selling for $40 per share, and give your broker $15,000 to establish your margin account. If you earn no interest on the funds in your margin account, and assume that XYC pays no dividends. a.) So what will be your rate of return after one year if XYZ stock is selling at: i.) $44.00 ii.) $40.00 iii.) $36.00 b.) If the maintenance margin is 25%, how high can XYZ’s price...

Suppose that you sell short 1,000 shares of Intel, currently selling for $20 per share, and...

Suppose that you sell short 1,000 shares of Intel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Intel stock is selling at: (i) $22; (ii) $20; (iii) $18? Assume that Intel pays no dividends. b. If the maintenance margin is 25%, how high can Intel’s price rise before...

Suppose that you sell short 200 shares of Xtel, currently selling for $50 per share, and...

Suppose that you sell short 200 shares of Xtel, currently selling for $50 per share, and give your broker $6,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $56; (ii) $50; (iii) $45? Assume that Xtel pays no dividends. b. If the maintenance margin is 25%, how high can Xtel’s price rise before...

Suppose that you sell short 1,000 shares of Xtel, currently selling for $60 per share, and...

Suppose that you sell short 1,000 shares of Xtel, currently selling for $60 per share, and give your broker $45,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $66; (ii) $60; (iii) $54? Assume that Xtel pays no dividends. b. If the maintenance margin is 25%, how high can Xtel’s price rise before...

Subjects