Question

You just bought 200 shares of a stock priced at $48 per share using 50% initial margin. The broker charges 4% annual interest rate on the margin loan and requires a 30% maintenance margin. One year later stock price dropped to 31 and you recieved margin call, to restore your margin to the initial margin level, how much would you need to deposit?

Answer ___+/- ____

You sell short 100 shares of company A which are currently selling at $32 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call?

Answer ___+/- ____

Answer #1

An investor buys $10,000 worth of stock priced at $40 per share
using 60% initial margin. The broker charges 10% on the margin loan
and requires a 35% maintenance margin. The stock pays $2.00-per
share dividend in 1 year, and then the stock is sold at $50 per
share. What was the investors rate of return?

You purchased 200 shares of Facebook common stock on margin at
$210 per share. Assume the initial margin is 50% and the
maintenance margin is 30%. Three days later, the stock price falls
to $190 per share.
Will you receive a margin call? (15 points)
Below what stock price level would you get a margin call?
Assume the stock pays no dividend; ignore interest on margin. (15
points)

An investor buys $16,000 worth of a stock priced at $20
per share using 60% initial margin. The broker charges 8% on the
margin loan and requires a 35% maintenance margin. If the stock is
sold at $23 per share in one year, what was the investor’s rate of
return?
Input your answer as a percentage with 2 decimal places,
without the %. For example, 20.27.

An investor buys $8,000 worth of a stock priced at $40 per share
using 55% initial margin three months ago. The broker charges 5.5%
per annum on the margin loan and requires a 33% maintenance margin.
The dividend yield of the stock is 0.5% per annum and is paid in
every three year. The stock is sold at $42 per share. What was the
investor's rate of return?

You sell 100 short shares of stock at $60 per share.
Initial Margin Requirement (IMR%)= 50%.
Maintenance margin for short sale of stock with price >
$16.75 is 30% of market (or position) value
QUESTIONS:
1. What is the price for margin call?
2. What is the new market value of the position?(Note: we
haven’t deposited any add’l cash yet)

You purchased 100 shares of common stock on margin at $45 per
share. Assume the initial margin is 50% and the stock pays no
dividend. What would the maintenance margin be if a margin call is
made at a stock price of $30? Ignore interest on margin. A.0.33
B.0.55 C.0.43 D.0.23 E.0.253. Assume you purchased 200 shares of GE
common stock on margin at $70 per share from your broker. If the
initial margin is 55%, how much did you...

You short-sell 50 shares of XYZ stock at $100 per share. Your
broker's initial margin requirement is 50% of the value of your
short position. You put up cash to satisfy the initial margin
requirement.
a) What will be your rate of return (after 1 year) if XYZ stock
sells at $110 a share? Assume that you do not earn any interest on
your funds in the margin account and that the stock pays a dividend
of $1.50 a share...

You sold short 400 shares of a stock for $60 per share. Your
broker’s initial margin requirement is 60%. The broker’s
maintenance margin requirement is 35%. You initially want to put up
as little capital (money) as possible to support the short sale.
A.) How much capital must you have in your account before you can
make the short sale? B.) If the stock price goes to $70 per share,
will you receive a margin call? Show your work to...

1)
You sell short 200 shares of Doggie Treats Inc. that are currently
selling at $25 per share. You post the 50% margin required on the
short sale. If your broker requires a 30% maintenance margin, at
what stock price will you get a margin call? (You earn no interest
on the funds in your margin account, and the firm does not pay any
dividends.)
A.
$32.25
B.
$31.50
C.
$28.85
D.
$35.71
2) You purchased 250 shares of common...

ABC stock is currently selling for a price per share of $50. It
has announced (not yet paid though) its annual cash dividend of $2
per share. To short the stock, the broker charges the client a fee
(stock borrow) of 1% p.a, charged at the time the position is
covered. The broker IMR is 50% and MMR is 30% for short
sales.
Client A sells short 100 shares of ABC stock at $50. A month
later, right after the...

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