You decide to sell short 260 shares at a price of $66.17 each. The inital margin is 50%.

How much money do you have to contribute to the account?

Expert Solution

Total money which will be required for account=(number of shares X price*(1-margin)

= (260*66.17*50%)

= 8602.10

jeff jeffy answered 3 years ago

The price of Apple stock is currently $96.89 and you decide to sell short 540 shares. The inital margin is 60%.

The price of Apple stock is currently $96.89 and you decide to sell short 540 shares. The inital margin is 60%.Part 1What's the minimum amount of money you must contribute to the account to satisfy the initial margin requirement?

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 sell short 200 shares at $50 per share. You post the 50% margin required for...

You sell short 200 shares at $50 per share. You post the 50% margin required for the short sale. Assume you earn no interest on your margin funds, nor pay any interest on the loan of shares. The company stock pays dividends of $0.33 per share every quarter. What is your rate of return on this position, if you close it out at $42 per share after one year? Enter answer in percents, accurate to 2 decimal places.

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 sell 100 shares of PGD short at a price of $50 per share. How much...

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 are bearish on Telecom and decide to sell short 100 shares at the current market...

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $39 per share. a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round...

You are bearish on Loser CO. and decide to sell short 100 shares at the current...

You are bearish on Loser CO. and decide to sell short 100 shares at the current market price of $49 per share. The initial margin is 50%. How high can the price of the stock go before you get a margin call if the maintenance margin is 25% of the value of the short position? Round your answer to the nearest cent (2 decimal places).

4. You are bearish on Google stock and decide to sell short 20 shares at the...

4. You are bearish on Google stock and decide to sell short 20 shares at the current market price of $1500 per share. (a) How much cash must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? (b) How high can the stock price rise before you get a margin call if the maintenance margin is 20%?

You are bearish on Telecom and decide to sell short 100 shares at the current market...

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?

You are bearish on Telecom and decide to sell short 180 shares at the current market...

You are bearish on Telecom and decide to sell short 180 shares at the current market price of $70 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole number.) b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30%...

Question

You decide to sell short 260 shares at a price of $66.17 each. The inital margin is 50%.

Solutions

Expert Solution

Related Solutions

The price of Apple stock is currently $96.89 and you decide to sell short 540 shares. The inital margin is 60%.

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

You sell short 200 shares at $50 per share. You post the 50% margin required for...

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

You sell 100 shares of PGD short at a price of $50 per share. How much...

You are bearish on Telecom and decide to sell short 100 shares at the current market...

You are bearish on Loser CO. and decide to sell short 100 shares at the current...

4. You are bearish on Google stock and decide to sell short 20 shares at the...

You are bearish on Telecom and decide to sell short 100 shares at the current market...

You are bearish on Telecom and decide to sell short 180 shares at the current market...