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- If a stock is selling for $90 and is split 3 for 1, the new price of the stock should be $30. a. True b. FalseYou calculated that stocks A and B are worth $50. A currently sells for $49 and B currently sells for $51. Which stock should you buy? Select one: a. A b. B c. not enough informationA stock you purchased for $50 has paid out $3.50 in dividends. The stock is now selling for $60. If you were to sell, what would your total percentage return be?
- What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10? a. 8.20% b. 11.34% c. 8.82% d. 12.20%An investor purchases a call for CL0 = $3.00 with a strike of X = $40 and sells a call for CH0 = $1.00 with a strike price of $50. Compute the profit of a bull call spread strategy when the price of the stock is at $45.Options basics. Figure out the payoff and the profit per share. You sell a 46 call for 4. Stock ends at 545. Profit = $ Use numbers, decimals and if the value is negative
- An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? Draw the profit and loss diagram for this strategy as a function of the stock price at expiration.You shorted a stock at $50 a share. If the maintenance margin is 35%, at what price level will you get a margin call? Group of answer choices A) $55.55 B) $57.50 C) $62.55 D) $60You have purchased stock A when it is $4 and sold it at $5. What is your holding period return?
- You currently hold a stock that is priced at $223. You buy an atthe-money put for $9. Compute the maximum loss from holding the put and the stock and draw the profit profile of the aggregate position.If an investor buys 1,000 shares at $50 and the initial margin is 60% and the maintenance margin is 30%, the investor will receive the first margin call when the stock price falls below: $41.29 $38.52 $31.57 $28.57 $26.77You want to purchase Stock A currently trading at $50 per share. You have $10,000 of your own to invest. You borrow an additional $10,000 from your broker and invest $20,000 in the stock. How far does the price of Stock A have to fall for you to get a margin call if the maintenance margin is 35%? Round your answer to two decimal places and enter the number without the dollar sign