1. If you bought a September '17 contract, one contract is for 5,000 bushels, and the price closes at $4.6595/bushel, what is your profit or loss? 2. Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share. 2a. What is the remaining margin in the account? 2b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call? MATURITY LAST CHG HIGH LOW May '17 3.6125 -0.0525 3.6800 3.6075 Jul '17 3.6775 -0.0550 3.7450 3.6725 Sep '17 3.7525 -0.0475 3.8125 3.7475 Dec '17 3.8575 -0.0450 3.9150 3.8525 Mar '17 3.9575 -0.0400 4.0025 3.9475

1. If you bought a September '17 contract, one contract is for 5,000 bushels, and the price closes at $4.6595/bushel, what is your profit or loss? 2. Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share. 2a. What is the remaining margin in the account? 2b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call? MATURITY LAST CHG HIGH LOW May '17 3.6125 -0.0525 3.6800 3.6075 Jul '17 3.6775 -0.0550 3.7450 3.6725 Sep '17 3.7525 -0.0475 3.8125 3.7475 Dec '17 3.8575 -0.0450 3.9150 3.8525 Mar '17 3.9575 -0.0400 4.0025 3.9475

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 2P

See similar textbooks

Similar questions

Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share. a. What is the remaining margin in the account? b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call?
Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $40 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share. Required: a. What is the remaining margin in the account in dollars? b-1. What is the margin percentage on the short position? b-2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?multiple choice Yes No c. What is the rate of return on the investment? (Negative value should be indicated by a minus sign.)
On March 1st, Frank opens a brokerage account and sell shorts 200 shares of Doggie Treats Inc. at $60 per share. The initial margin requirement is 50%. a. What is the margin in Frank’s account when he first sells the stock? b. The stock pays a cash dividend of $1 on March 28th, and the share price falls to $50 per share by the end of March, what is the remaining equity in his account? c. What is the monthly rate of return on his margined position?
On January 1, you sold short 100 shares of XYZ stock at $20 using a 50% initial margin. The interest rate on the margin account is 10% annually. On April 1 (in three-months), you covered the short sales by buying stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. Assume you received interest on all your assets, i.e. the sum of the short sale proceeds and the margin. What is the value of your assets and equity on April 1? What is the total rate of return on equity?
You decide to sell short 100 shares of Github Industries when it is selling at its yearly high $56. Your broker tells you that your margin requirement is 45 % and that the commision on the purchase is $155. While you are short the stock, Github pays a $2.50 per share dividend. At the end of one year, you buy 100 shares of Github at $45 to close out your position and are charged a commision of $145 and 8 % interest on the money borrowed. What is your rate of return on the investment?
The ABC Corporation received subscription for 9,000 ordinary shares at P40/share, where P35 is the par value and received 40% downpayment. A month after 3,600 of said shares were in full while the rest paid an additional P20/share. By the end of the year, 500 of said subscribers were not able to pay and were declared as delinquent. How much would be debited as Receivable from highest bidder?
Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid : a dividend of $2 per share.a. What is the remaining margin in the account?b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call?c. What is the rate of return on the investment?
Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $120 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $120 to $131.20, and the stock has paid a dividend of $20.00 per share. a. What is the remaining margin in the account? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
ABC Traders sold 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% of the value of the short position?
Schrute Ltd has been trading for many years and on 1 May 2021 it had £12,000 in the bank. Every month it makes sales valuing £60,000, half of which is for cash, with one month’s credit given on the other half. In the month of May a bad debt of £2,000 was written off. It takes two months credit on its monthly purchases of £28,000. During May the company issued 20,000 shares with a £1 nominal value, securing a 50% premium on the issue. Also during the month depreciation on non-current assets of £3,000 was charged. What was Rose Ltd’s bank balance on 31 May? a) £74,000 b) £69,000 c) £72,000 d) £64,000
Schrute Ltd has been trading for many years and on 1 May 2021 it had £12,000 in the bank. Every month it makes sales valuing £60,000, half of which is for cash, with one month’s credit given on the other half. In the month of May a bad debt of £2,000 was written off. It takes two months credit on its monthly purchases of £28,000. During May the company issued 20,000 shares with a £1 nominal value, securing a 50% premium on the issue. Also during the month depreciation on non-current assets of £3,000 was charged. What was Rose Ltd’s bank balance on 31 May?
Eight months ago, the Zeus Fund entered into a short position in a one - year forward contract on 1,250 shares of Cerner Corporation stock at a forward contract price of $94 per share. Today, the price of Cerner stock is $92.50 per share and the interest rate for continuous compounding is 1 % . Cerner stock does not pay dividends. If the Zeus Fund wanted to exit the contract today, how much should it be willing to pay, or how much should it expect to receive, from its counterparty?

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

MATURITY	LAST	CHG	HIGH	LOW
May '17	3.6125	-0.0525	3.6800	3.6075
Jul '17	3.6775	-0.0550	3.7450	3.6725
Sep '17	3.7525	-0.0475	3.8125	3.7475
Dec '17	3.8575	-0.0450	3.9150	3.8525
Mar '17	3.9575	-0.0400	4.0025	3.9475