In: Finance
IMR 0.50 MMR 0.30 Call rate 0.0375 Shares 1,000
Verizon |
|
Purchase price |
$54.35 |
Expected sales price |
$57.97 |
Months held |
11 |
What is your initial margin requirement?
What is your return?
Suppose you don’t sell the stock. What is the lowest it can go before you receive a margin call?
The price of the stock drops to $35.00. What is the amount of your margin call?
What is the maximum market value you can have if you can’t meet the margin call?
What is the reduction needed?
How many shares is your broker going to sell?
What is your new market value?
What is your new loan?