Provide your detailed explanations to the following questions: 1) You purchase 550 shares of Unilever Co. stock on margin at a price of $65. Your broker requires you to deposit $12,514. What is your margin loan amount? What is the initial margin requirement? 2) Suppose you sell the stock at a price of $70. What is your return? What would your return have been had you 316 if th stock price in SEE wher all the stock?
Provide your detailed explanations to the following questions: 1) You purchase 550 shares of Unilever Co. stock on margin at a price of $65. Your broker requires you to deposit $12,514. What is your margin loan amount? What is the initial margin requirement? 2) Suppose you sell the stock at a price of $70. What is your return? What would your return have been had you 316 if th stock price in SEE wher all the stock?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Provide your detailed explanations to the following questions:
1) You purchase 550 shares of Unilever Co. stock on margin at a price of $65. Your broker requires you to deposit
$12,514. What is your margin loan amount?
What is the initial margin requirement?
2) Suppose you sell the stock at a price of $70. What is your return? What would your return have been had you
purchased the stock without margin? What if the stock price is $55 when you sell the stock?
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