purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50% and the maintenance margin is 45%. If stock price declines to $40, how
Q: Harry purchases 1,000 shares at the price of $44 using his margin account. If the initial margin is…
A: Number of shares = 1000 Initial Purchase Price = 44 Initial Margin = 50% Maintenance Margin = 45%…
Q: You purchase 380 shares of stock at $37.60 per share. Several months later you sell the shares at…
A: Gain or loss will be the difference between to total purchase price and net proceeds Gain or loss…
Q: What is the total cost of the purchase? Total number of shares purchased = Round lot commission…
A: a.
Q: ou decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of…
A: Rate of return on investment is the return expressed in percentage terms that is expected on the…
Q: Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If…
A: Initial margin is expressed in percentage term that is the security amount of the purchase price…
Q: mium of $1.03. A put option with exercise price of $25 has a premium of $4.83. If David uses these…
A: Given information : Number of shares 100 Stock market price $ 33.67 Call option exercise…
Q: f the market maker is willing to purchase the entire block of 1,500 shares from Alexis and, from…
A: The bid price refers to the buy price and ask price refers to the sell price. The bid-ask spread is…
Q: Caroline owns 3000 shares of stock in Mousey Corporation. She will receive $3.30 per share dividend…
A: Since more than three sub-parts are asked at a time, the answer for first three sub-parts is…
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: Mr. Aley bought 320 shares of Apple at $40 per share; he bought the stock at the initial margin of…
A: Sometimes, investors only pay some amount to buy the securities to broker and remaining amount is…
Q: Maren received 10 NQOs (each option gives her the right to purchase 15 shares of stock for $7 per…
A: Sale of share (10*7*$20) 1400 less basis (10*7*15) 1050 The gained realised 350 the tax…
Q: Lauren has a margin account and deposits $49,994 into it. Assume the prevailing margin requirement…
A: Maintenance margin A minimum equity amount that is to be maintained in a margin account by an…
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: Arthur buys $2, 000 worth of stock. Six months later, the value of the stock has risen to $2, 200…
A: Yield is that rate on the basis of interest is received.
Q: rrowed on margin to $10K to buy 40,000 shares of NVM stock when it was trading at 45 cents a share.…
A: Broker gives margin to the clients so that they can increase the trading volume and they can trade…
Q: The price of a stock starts at $60 per share. The stock price rises at an average rate of $0.75 per…
A: The dividend yield is the yearly dividend payments to a firm's shareholders expressed as a…
Q: Rick Thompson is considering the following two alternatives for investing in Davis Industries whose…
A: The question is based on the concept of Derivatives
Q: Legs Diamond owns shares in Vanguard Index 500 mutual fund worth $1 million on july 15. (This is an…
A: Stock index futures are the derivatives that are underly on an index of stock with a very low value…
Q: You purchase 480 shares of stock at $39.40 per share. Several months later you sell the shares at…
A: The gain is the net profit or amount that is received on the sale of the shares.
Q: Wendy purchased 800 shares of Robotics stock at $4 per share on 1/1/21. Wendy sold the shares on…
A: Beta = 1.3 Risk free rate = 2% Market risk premium = 7%
Q: Lauren short sells 100 shares of XYZ at $52 with a 50% initial margin. She then bays back the stock…
A: The percentage profit/loss earned on the transaction is calculated on the initial margin here as the…
Q: Mary Poppins plans to start a company and offers to sell 30,000 ordinary shares at a price of $2 per…
A: The total amount received from investor will include the application money received from 40,000…
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: Ghaith purchased 200 shares of stock at $19 using his 70% margin account. his maintenance margin is…
A: PAYMENT MADE FOR PURCHASE = NUMBER OF STOCK * PRICE PER STOCK INITIAL DEPOSIT = PAYMENT MADE *…
Q: Tom Hank buys 150 shares of J.W stock for $85 per share and a three-month J.W call option with an…
A: Total Shares $ 150.00 Stock Price $ 85.00 exercise price $ 105.00 Premium $…
Q: A person has $28,000 invested in stock A and stock B. Stock A currently sells for $20 a share and…
A: Stocks are basically combined in a proportion keeping in mind the diversification benefit created by…
Q: Sam bought through her broker 200 Apex Mining common stock at $61.50/share. The broker charged her…
A: Total shares purchased = 200 Each cost = $ 61.50 Total cost = 200 x $ 61.50 =…
Q: Cristiano Ronaldo sells short 200 shares of common stock at $40 per share. One year later, he…
A: Given, Sells short shares = 200 Price =$40
Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…
A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…
Q: Peter owns 200 shares which are currently trading at $57 per share. He implements a protective put…
A: A protective put is a hedging strategy where the investor owns the shares and to avoid downside risk…
Q: Howard holds 3,000 shares in Bean, a firm with a stock price of $30. Bean has announced a dividend…
A: The investor would receive a dividend of $1.50 per share. The dividend received can be reinvested in…
Q: . You decided to buy 100 shares of ABM Corp. Currently, it is trading at $43 per share. You think…
A: solution concept placing a limit order When we place the limit order for the purchase…
Q: Suppose you own 1,000 common shares of Laurence Incorporated. The EPS is $12.00, the DPS is $5.00,…
A: Adjusted EPS is the number of shares outstanding in addition to the existing ones if all convertible…
Q: Dan has $500. He invests that $500 into the stock market and in Week 1, he collects 10% of what he…
A: The future value is the future worth of the amount that will be paid or received in the future.
Q: a) Jessie B. purchases 450 shares of Smooth Sail Inc. for $50 per share at a time when the initial…
A: Margin trading is a facility which is provided by the broker to the investor that, investor can…
Q: Please show answer You purchase 75 shares of stock at $124 per share. The next day the stock…
A: The financial exchange to the assortment of business sectors and trades exercises of purchasing,…
Q: Harry purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50%…
A: The amount hat need to deposit is calculated by subtracting the amount in the account from the…
Q: Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year: $2.20…
A: Solution Given Dividend at the end of the first year $2.00 Dividend at the end of the…
Q: You sell short 400 shares of MIZ which are currently selling at $ 15 per share . You post the 30 %…
A: Shares Short =400 Short Price = $15 Total value = Shares Short * Price = 400*15 =…
Q: calculate the gain or loss that Olivia Crowe realizes if she makes a 100-share transaction.
A: An investor expecting a decline in the price of the stock within a particular period goes for Short…
Q: A manager buys three shares of stock today, and then sells one of those shares each year for the…
A: Let R1, R2 and R3 be the returns for year 1, 2 and 3
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:
Harry purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50% and the maintenance margin is 45%. If stock price declines to $40, how much is Harry required to deposit to his margin account?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Harry purchases 1,000 shares at the price of $44 using his margin account. If the initial margin is 50% and maintenance margin is 45%, at what price should he receive a margin call?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?Lisa Lasher buys 440 shares of stock on margin at $15 per share. If the margin requirement is 60 percent, how much must the stock rise for her to realize a 20-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent.
- Ghaith purchased 200 shares of stock at $19 using his 70% margin account. his maintenance margin is 40%. At what price will Ghaith receive a margin call?Kim opens a brokerage account and purchases 500 shares of Batliboy at OMR50 per share. She borrows OMR5,000 from her broker to help pay for the purchase. The interest rate on the loan is 7% What is the margin in Kim's account when she first purchases the stock If the share price falls to OMR40 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call? What is the rate of return on her investment?Kim opens a brokerage account and purchases 500 shares of Batliboy at OMR50 per share. She borrows OMR5,000 from her broker to help pay for the purchase. The interest rate on the loan is 7% What is the margin in Kim's account when she first purchases the stock If the share price falls to OMR40 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call? What is the rate of return on her investment? (The first question been solved, I need answer for second and third questions)
- Arthur buys $2, 000 worth of stock. Six months later, the value of the stock has risen to $2, 200 and Arthur buys another $1, 000 worth of stock. After another eight months, Arthur’s holdings are worth $2, 700 and he sells of $800 of them. Ten months later, Arthur finds that his stock has a value of $2, 100. (a) Compute the annual time-weighted yield rate of the stock over the two-year period. (B) Compute the annual dollar-weighted yield for Arthur over this two-year time period.Anne has €60,000 in cash that she plans to invest in Apple stock, which is currently selling at €50 per share. She plans to buy the stock on margin by borrowing 40% of the total investment from her broker, How many shares of Corning will she purchase?Roger borrowed on margin to $10K to buy 40,000 shares of NVM stock when it was trading at 45 cents a share. The stock price has recently risen by 3%, how much cash may Roger withdraw from his account if he is to maintain a margin of 30%?
- Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%.a. What is the margin in Dée’s account when she first purchases the stock?b. If the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call?c. What is the rate of return on her investment?a) Jessie B. purchases 450 shares of Smooth Sail Inc. for $50 per share at a time when the initial marginrequirement is 60%. After two months, seeing that the price of Smooth Sail has fallen to $40 per share,Jessie wishes to buy an additional 200 shares. By this time, the initial margin requirement has gonedown to 50%. Will Jessie be able to do some pyramiding? What is the amount of margin he will berequired to provide for his second transaction? Support your answer with relevant calculations.Laureen purchased 1,000 shares of Apple stock for $80 per share with an initial margin requirement of 65% and a maintenance margin of 40%. Assume the stock price falls to $30 per share, how much equity must Laureen contribute? $2 per share $8 per share $10 per share $12 per share