Assume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5. The stock paid dividends during the period of $2.5. and you did not remove any money from the account before making the offsetting transaction. The interest is 7% if price at time of covering your position reached48. maintenance margin is 0.32 percent, calculate what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin call what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin calle what is your return

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 17P
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Assume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5. The stock paid dividends during the period of $2.5. and you did not remove any money from the account before making the offsetting transaction. The interest is 7% if price at time of covering your position reached48. maintenance margin is 0.32 percent, calculate what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin call
what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin calle what is your return

Assume you sell short 100 shares of common stock at BDT
$50per share, with initial
margin at 0.5. The stock paid dividends during the period
of $2.5. and you did not remnove
any money from the account before making the offsetting
transaction. The interest is 7%
if price at time of covering your position reached48,
maintenance margin is 0.32 percent. calculate
what is your account value
what is your equity
what is your equity after price changes'?
what is your actual margin
ot what price the broker wll glve you a margin cal?
Transcribed Image Text:Assume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5. The stock paid dividends during the period of $2.5. and you did not remnove any money from the account before making the offsetting transaction. The interest is 7% if price at time of covering your position reached48, maintenance margin is 0.32 percent. calculate what is your account value what is your equity what is your equity after price changes'? what is your actual margin ot what price the broker wll glve you a margin cal?
what is your account value
what is your equity
what is your equity after price changes'?
what is your actual margin
at what price the broker will gve you a margin call?
what is your return
Transcribed Image Text:what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will gve you a margin call? what is your return
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