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 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...
Assume you sell short 1,000 shares of common stock at
$35 per share. What would be your profit if you repurchase the
stock at $25 per share? The stock paid no dividends during the
period.
A.
$10,000
B.
-$5,600
C.
$5,600
D.
-$10,000.
E.
$12,600
You sell short 1,000 shares in Omega Corporation at $20 per
share and give your broker $12,000 to establish a margin
account.
a.) What is the margin (%) in the account at the time of
sale?
b.) If the maintenance margin is 25%, how high will the price of
Omega stock have to rise for you to receive a margin call?
You sell 100 shares of PGD short at a price of $50 per share.
How much is your initial margin, given margin requirements of 40%?
If the stock declines to $30 per share, what is your percentage
gain or loss on the initial equity?
You want to buy 1,000 shares of AAPL, at $115 a
share.What if you purchased those shares with maximum
margin?Your brokerage will charge interest on the amount
borrowed, at call money rate.Let’s say the rate is 8%. If AAPL goes up to $140 in one
year. What is your gain in nominal terms and
percentage?What if AAPL stock gone down to $95?
A trader opened an account to short-sell 1,000 shares of a tech
stock at $120 per share. The initial margin requirement was 50%.
(The margin account pays no interest.) A year later, the price of
the stock has risen from $120 to $131.20, and the stock has paid a
dividend of $20.00 per share. What is the remaining margin in the
account?
You want to sell a Google share. You believe that Google’s share
price is currently too low. You would sell the Google share if its
price is at least 2% above the current level. What type of order
should you place?a limit buy ordera market sell ordera limit sell ordera market buy order
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...
You purchased 1,000 shares of the New Fund at a price of $35 per
share at the beginning of the year. You paid a front-end load of
4%. The securities in which the fund invests increase in value by
12% during the year. The fund's expense ratio is 1.2%.
What is your rate of return on the fund if you sell your shares at
the end of the year? (Do not round intermediate
calculations. Round your answer to 2 decimal...