Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. The maintenance margin is 35%. How far does the price of the stock rise for you to get a margin call?

You are bearish on Telecom and decide to sell short 160 shares at the current market price of $65 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% of the value of the short position? (Round your answer to 2 decimal places.)

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $59.   Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $44. What are the dividend yield and percentage capital gain in this case?

suppose you short sell 100 shares of IBX, now selling at $172 per share. (a) what is your maximum possible loss? (b) what happens if you simultaneously place a stop-buy order at $182?

Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,300 shares at $93 per share with an initial margin of 55 percent. One year later, the stock is selling for $101 per share and you close out your position. What is your return assuming no dividends are paid

You short sell 200 shares of stock at $48.23 per share and cover your short position three months later at $44.66 per share. If your broker's initial margin requirement is 65%, and the maintenance margin requirement is 45%, what is your rate of return? 100tne

Assume you buy 100 shares of stock at $40 per share on margin (40 percent). If the price rises to $55 per share, what is your percentage gain on the initial equity?   No of shares =  100; Price of stock = $40; Position taken = long   Equity required in account (Initial Margin) = 40% x (100 shares x $40) = 40% x $4,000 = $1,600                Gain percentage = {[(Current price -Entry price) no of shares]/Initial Margin} x 100                                              = {[($55 - $40) 100 shares] / $1,600} x 100                                              = $1,500 / $1,600 x 100                                              = 93.75%   2. In problem 1, what would the percentage loss on the initial equity be if the price had decreased to $28?   Loss percentage = {[(current price – entry price) no of shares] / Initial Margin} x 100                               = {[($28 - $40) 100 shares] / $1,600} x 100                               = {[ -$12 x 100 shares] / $1,600} x 100…

You have a preferred stock with an $80 par value. The stock has a required return of 7% and the dividend is 6% of par value. How much should you pay for this stock?

An investor short sells 100 shares of a stock for £50 per share. The initial margin is 50%. With a maintenance margin of 30%, what is the stock price at which there will be a margin call? If rather than short selling the shares you buy them on margin, explain how the definition of the margin would change.

You have gathered the following information for a company: The current price-to-earnings for the firm is The expected Earnings per share for the firm is The current price of the stock is Someone offers you $110 for the stock. What would you do? B Reject the offer as the expected future value is 15 $8.25 Accept the offer as there is a profit of $90.00 $123.75 Accept the offer as the expected future value is less than $110 Reject the offer as you have no idea where future prices will be. $20.00