d short 700 shares of XYZ Company at $43 per share. The initial margin requirement was 60%. (The margin account pays no interest.) How high can the price of the stock go before you get a margin call if the maintenance margin is 25%

Q: You invested in 800 shares of stock for $49.20 a share. The initial margin requirement is 65 percent…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Shares in OKComputer currently trade at $63.41. Your broker allows you to short sell the shares with…

A: Initia Margin is the amount trader needs to deposit with broker for trading securities Maintenance…

Q: is believed that RNZ Co.’s stock price is going to decline from its current level of P88.50 anytime…

A:

Q: Suppose that investors cumulatively short-sell 6 million shares of a stock and the meantime, the…

A: In short sell one does not own stocks but promises to buy at lower prices but if prices goes up then…

Q: Suppose you decide that the Bear Company stock is selling at too high a price at its current $50 per…

A: Total Profit/loss is amount of gain/loss per share multiplied with number of shares

Q: A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance…

A: Initial Margin is used to be paid upfront when we buy Shares under future call. Additional margin is…

Q: Julie Baskoff has sell short 470 shares of Watercraft Industries at 93 on margin. The leverage ratio…

A: Short Sale Quantity of Watercraft Industries: sharesShort Sale Price on marginInitial Leverage…

Q: Don't provide handwritten soluton.   You are bullish on Telecom stock. The current market price is…

A: Trading on margin is a financial strategy where an investor borrows funds from a broker to purchase…

Q: Shavir has decided that the stock of Gentle Bidders is overvalued at $7 a share and short sales…

A: Given: Stock is overvalued at $7 No margin Have to put entire value when it is sold short. Here, the…

Q: Suppose the stock of Company J pays no dividends and has a current price of $90.00. The forward…

A: Profit = Forward price - Stock price at expiry.Forward price = $93.60Stock price at expiry = 109.80

Q: Julie Baskoff has sell short 300 shares of Watercraft Industries at 85 on margin. The leverage ratio…

A: Let's break down the information given:Short Sale Quantity: sharesShort Sale Price: $85 per…

Q: The current spot price for a stock index is 1000. The continuously compounded interest rate is 5%…

A: Calculate the value of correctly priced forward contract (FV) by the formula. The continuously…

Q: Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with…

A: As per the given information: Current price of shares - $31.76Initial margin - $60.00%Maintenance…

Q: vestor purchases 250 shares of ABC stock at $313 per share. The investor deposits the initial margin…

A: Brokers provide margin for trading in future and options and they also provide loans and they charge…

Q: T-bills currently yield 3.7 percent. Stock in Nina Manufacturing is currently selling for $74 per…

A:

Q: You sold short 100 shares of Nikola common stock at $45 per share. The initial margin is 40%. At…

A: You are taking the short position, that means you are selling the shares. You will get a margin call…

Q: ares in OKComputer currently trade at $45.33. Your broker allows you to short sell the shares with…

A: Brokers provide margins to clients in the forward and futures so that they can trade more and so…

Q: A non dividend-paying stock has a spot price of $43.40. The nine month risk-free rate is 5.70…

A: The appropriate value of the 9 months future contract is…

Q: You are bearish on Ali baba’s stock and decide to sell short 100 shares at the current market price…

A: Given Information: Current market price = $50 Number of shares = 100

Q: Shares were issued at 160 each but the issuance cost is 10 per share. The expected dividend to be…

A: 1) Computation of cost of equity ( Dividend price approach ): According to the Dividend price…

Q: The stock of PQR Industries is trading at $28.69. You feel the stock price will decline, so you…

A: Maintenance Margin is the minimum amount that an investor should maintain in his margin account. If…

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: You bought 1000 shares of XYZ comman stock on margin at the price of $70 per share. The initial…

A: Let's understand maintenance margin with an example.Suppose the initial position was $50,000 and the…

Q: 3. You are bullish on ITC stock. The current market price is $100 per share, and you have $400,000…

A: 1.Number of shares bought = 2.rate of return =

Q: A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on…

A: The objective of this question is to calculate the net profit or loss from buying a call option on…

Q: is believed that Blue Co.’s stock price is going to decline from its current level of P88.50 anytime…

A:

Q: You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share.Assume the…

A: Short sale price, P0 = $ 83.55Short sale quantity, Q = 100Proceeds from short sale, S = P0 x Q =…

Q: The margin requirement on a stock purchase is 30%. You fully use the margin allowed to purchase 200…

A: The term stocks or shares refers to the equity security that is issued by the company to raise…

Q: An investor buys $20,000 worth of a stock priced at $25 per share using 80% initial margin. The…

A: Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge = 5% Maintenance…

Q: can the stock price decline (%) from your purchase price before triggering a margin call? When…

A: Brokers provide loans to clients to do trading on margin and this gives the clients extra earnings…

Q: A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance…

A: An initial margin is the amount that the investor has to deposit at the starting to run their share…

Q: An investor buys $ 20,000 worth of a stock priced at $ 25 per share using 80 % initial margin . The…

A: Given Information: Stocks purchased - $20,000 Stock price - $25 Initial margin - 80% Broker charges…

Q: No excel You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you…

A: Let’s find the profit from trading

Q: Shopify, Inc common stock currently sells for $1,229.91 per share, and the standard deviation of…

A: To calculate the rho (ρ) for a call option using the Black-Scholes model, we need to use the…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Value of Purchase = $10000 Stick Price = $40 per share Number of Share =10000/40 = 250 Initial…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Given information: Investment : $10,000 Stock price: $40 Initial margin: 70% Broker fees : 10%…

Q: You short sell 200 shares of stock at $48.23 per share and cover your short positio three months…

A: Rate of return is the amount of profit or loss on the investment made as a percentage of initial…

Q: A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance…

A: Price of 500 Boeing Shares= $30 a piece Initial margin= 50% Maintenance margin= 50% Stock price…

Q: on the stock is 15%, what is the current value of the stock? A company expects to pay a dividend of…

A: The DDM refers to the model that states that dividends are the best indicators of the financial…

Q: A short strangle was initiated with a strike price for the call at $70 and the strike price of the…

A: short strangle has one short call  and one short put with different  strike price. given, strike…

Q: What steps would be involved?

A: Arbitrage is the strategy applied by the investor to take the benefit of mispricing, at various…

Q: You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The company offered its investors option contracts to buy their shares at P72 with the current price…

A: The volatility rate of options for stock price represents the fluctuations in the price of the…