1. A customer buys 100 shares of ABC at $60 and buys 1 ABC Jan 60 Put @ $7. The breakeven point is: A $53   B $67   C $70   D $77   2. In November, a customer sells 1 ABC Jan 70 Call @ $4 when the market price of ABC is $71. The customer's maximum potential gain is: A  $400   B  $6,600   C  $7,400   D  unlimited

Q: You purchased 1000 shares of IBM common stock on margin at $140 per share from your broker. If the…

A: Given: Number of shares purchased = 1000 Price = $140 Initial margin = 60%

Q: An investor buys 100 shares of Altria at $82 per share on margin. The initial margin requirement is…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: What is the total cost of the purchase?   Total number of shares purchased = Round lot commission…

A: a.

Q: An investor buys $20,000 worth of a stock priced at $25 per share using

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

Q: Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the…

A: The question is based on the concept of margin in stock trade , a trader has to keep check of margin…

Q: You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.Assume the…

A: Nos. of stocks purchased, N = 100Price per share, P = $ 169.25 / shareTotal purchase consideration,…

Q: Lauren has a margin account and deposits R50,000. Assume the prevailing margin requirement is 40…

A: a)  Formula: Number of sharesPurchase=DepositSelling price×Required margin

Q: Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin…

A: When the money borrowed from the broker for making an investment is made then it is called margin…

Q: On March 1st, Frank opens a brokerage account and sell shorts 300 shares of Doggie Treats Inc. at…

A: Stock: Stock is the number of shares being owned by the company. It is being segregated into two…

Q: You would like to sell 200 shares of Xenith Bankshares, Inc. (XBKS). The current ask and bid quotes…

A: Bid size is the number of securities that investors are ready to buy at a certain bid price. The bid…

Q: IBM was trading at $100 when Mrs. Peterson bought a 100 call on IBM at a price of $10. Three months…

A: The leverage factor for call or put options shows the relative change that occurs in option value…

Q: You’ve borrowed $14,000 on margin to buy shares in Ixnay, which is now selling at $56 per share.…

A: a) Working note:

Q: You purchase 240 shares of stock at $39.20 per share. Several months later you sell the shares at…

A: Round lots: A round lot is a lot of stock which at leasr consist of100 shares or a large number that…

Q: 3. Suppose you want short 100 shares of Apple, at $ 30 per share with the initial margin 50% and the…

A: Equity consists of money which would be decided to return to a corporate debtor if all of its assets…

Q: You purchase 240 shares of stock at $37.40 per share. Several months later you sell the shares at…

A: A round lot is a lot of stock which at least consist of 100 shares or a large number that can be…

Q: Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share.…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: You've just opened a margin account with $20,000 at your local brokerage firm. You instruct your…

A: 1) Computation:

Q: The current stock price of ABC Corp. is 50. Prices for six-month calls on ABC are given in the table…

A: there are 4  srategies all strategy diagrams given below

Q: An investor purchased 20 shares of stock in a company for $45 per share. One year later, the…

A: The realized return on investment can be calculated as difference in purchase price and sale price…

Q: 5000 shares of stock were purchased at $25 per share with a 5% broker commission.  The following…

A: a) Computation of Cost of Investment:

Q: 1. If you bought a September '17 contract, one contract is for 5,000 bushels, and the price closes…

A: Hi, as per our policy we will answer the first question alone. Since there are multiple questions…

Q: An investor puts up $4,000 but borrows an equal amount of money from their broker to double the…

A: The return amount will be the difference between purchase price and interest and its selling price…

Q: Mr. P. decides to short sell 10000 shares of Chegg Inc. at that time market price. was $5.6. His…

A: Calculate the amount of investment made by the the investor by multiplying the number of shares…

Q: You’ve borrowed $22,000 on margin to buy shares in Ixnay, which is now selling at $32 per share.…

A: Borrowed amount = $22,000 Your own equity = $22,000  Total Investment = $44,000 No. of shares bought…

Q: Suppose you want to buy 10,000 shares of Ultra Universe Company at a price of 4.00. You put up…

A: Given: Short of shares = 10,000 Price =P4 Initial margin = 60% Amount invested = P10,000

Q: On March 1st, Frank opens a brokerage account and sell shorts 200 shares of Doggie Treats Inc. at…

A: The margin requirement is the minimum amount that the investor needs to keep in the margin account.…

Q: You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at…

A: The percentage return that an investor is earning from a particular investment in a particular time…

Q: You purchase 240 shares of stock at $37.60 per share. Several months later you sell the shares at…

A: given information  purchased price = 37.60 selling price = 33.10 total number of shares = 240 shares…

Q: You have opened an account with a local broker & you placed an order for 4,000.0 shares of KLM corp.…

A: Given: Ordered placed 4000 shares @ 8 per shares The initial margin is 50% Broker’s rate = 6.0%…

Q: You've borrowed $27,392 on margin to buy shares in bxnay, which is now selling at $42.8 per share.…

A: Equity shares are those shares which do not have preferential right on dividend and repayment of…

Q: Lauren has a margin account and deposits R50,000. Assume the prevailing margin requirement is 40…

A: Here, Margin Deposit is R50,000 Margin Requirement is 40% Current Price of Share is R35 per share

Q: You are selling short 1000 shares of company A, which is currently selling its shares for…

A: When shares are sold on a short sale, it means that the transaction is effected by using shares…

Q: X Company's stock is selling for $40 and you've decided to purchase as many shares as you possibly…

A: Current market price = $40 Amount available = $12,000 Initial margin requirement = 60% 12,000 = 60%…

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: You purchase 150 shares for $30 a share ($4,500), and after a year the price falls to $25. Calculate…

A: Given: Purchase 150 shares (Purchase price) =$30Price falls (share price after falls)=$25No. of…

Q: a. An initial margin requirement is 54% and maintenance margin of 48%. An investor buys GPH, 9500…

A: Information Provided: Initial Margin Requirement = 54% Maintenance Margin = 48% Shares bought =…

Q: 1.5000 shares of stock were purchased at $25 per share with a 5% broker commission. The following…

A: The computation of the table as follows:

Q: A stock is selling for $83 per share. One-month European calls and puts on the stock with the strike…

A: To determine the net profit made on the straddle. Straddle makes a profit if the price moves in any…

Q: Today, Andrew sold 3,600 shares of Colts stock for $26.60 per share. Andrew paid $101,124 for the…

A: Calculate the total return as follows:

Q: ABC Co. believes that XYZ Corporation’s stock price is going to decline from its current level of…

A: The put option is the option that gives the buyer the choice but not the obligation to sell the…

Q: An investor buys $ 8,000 worth of a stock priced at $ 50 per share using 60 % initial margin . The…

A: A margin call occurs when an individual buys stock using leverage and its price falls; the investor…