You bought 1000 shares of XYZ comman stock on margin at the price of $70 per share. The initial margin is 50% and the maintenance margin is 40%. Now if the stock price falls to $60 per share, a margin call will be given at the price of $ 58.33 56.33 60.32 59.98

Q: You invested in 800 shares of stock for $49.20 a share. The initial margin requirement is 65 percent…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: You purchased 1000 shares of IBM common stock on margin at $140 per share from your broker. If the…

A: Given: Number of shares purchased = 1000 Price = $140 Initial margin = 60%

Q: You decide to enter a short-selling strategy with 100 shares. The current price is $70, initial…

A: The objective of this question is to determine the price that would trigger a maintenance call in a…

Q: is believed that RNZ Co.’s stock price is going to decline from its current level of P88.50 anytime…

A:

Q: You purchase 70 shares of Pepsi on margin at $50 per share. Assume the initial margin is 50%. The…

A: Value of shares = 70*$50 = $3,500Invested amount = $3,500*50%=$1,750and amount borrowed =…

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A: Most amount willing to pay is present value of all future cash flows discounted at required rate of…

Q: An investor is bullish in XYZ stock. He decides to buy on margin 1,000 shares at market price of…

A: Initial price=$50Maintenance margin=30%Initial margin=60%What should be margin call price.

Q: You invest $10,000 in a long position in a stock priced at $44 per share. Intial margin is 70% and…

A: A margin call is made by the broker to the investor asking them to deposit an extra amount in their…

Q: The margin requirement on a stock purchase is 25%. You fully use the margin allowed to purchase 100…

A: Here, Number of shares purchased = 100 Purchase price = $40 Margin requirement = 25% Price drops to…

Q: Suppose that you opened a margin account (margin requirement = 60%) with your brokerage firm.…

A: STEP 1 The gain or loss of an investment over a given time period, represented as a percentage of…

Q: You purchased 1000 shares of IBM common stock on margin at $140 per share from your broker. If the…

A: Number of shares purchased = 1000Price per share = $140Initial margin % = 60%

Q: Tricki Corp stock sells for $45 rights-on, and the subscription price is $35. Ten rights are…

A: To ascertain Tricki Corp's price upon commencing ex-rights trading, it's essential to comprehend how…

Q: You purchased one hundred shares of MSFT for fifty dollars per share using a sixty percent initial…

A: A margin account refers to a brokerage account where the investor only has to provide a part of the…

Q: You sold short 100 shares of Nikola common stock at $45 per share. The initial margin is 40%. At…

A: You are taking the short position, that means you are selling the shares. You will get a margin call…

Q: margin at $35 per share. $2000 is borrowed from the broker to complete the purchase. Determine the…

A: Margin account is to be opened with brokers to start trading in the market and to have open…

Q: You are bearish on Ali baba’s stock and decide to sell short 100 shares at the current market price…

A: Given Information: Current market price = $50 Number of shares = 100

Q: You want to set up a covered call position on 1,000 shares of XYZ stock. Your goal is to collect the…

A: An option contract is an agreement that provides the buyer with the right to acquire or transfer a…

Q: Burnwood Tech plans to issue some $80 par preferred stock with a 5% dividend. A similar stock is…

A: Cost of preferred stock = Annual Dividend / (Market Price - floatation Cost)

Q: You purchased 100 shares of common stock on margin for $30 per share. The initial margin is 50%, and…

A: Initial Investment = Number of Common Shares*Purchase Price Per Share*Initial Margin Percentage=…

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: Suppose you short-sell 1000 shares of AOT stock at $30 per share. Assume further the initial margin…

A: Short selling is a financial strategy where an investor borrows a security, typically a stock, and…

Q: 8 Months ago you bought 500 shares of stock on margin of $82. The initial margin requirement on the…

A: We need to calculate the initial investment. This is given by: Initial investment = 500 × $ 82 × .60…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: The interest rate at which banks and other financial organizations lend and borrow money from one…

Q: An investor buys $20,000 worth of a stock priced at $25 per share using 80% initial margin. The…

A: Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge = 5% Maintenance…

Q: u short sell 1,000 shares of RAJ stock at a price of $70. Your initial margin is 50%. If you cover…

A: The short sale is a process in which the trader has entered into a contract and sells the share…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Value of Purchase = $10000 Stick Price = $40 per share Number of Share =10000/40 = 250 Initial…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Given information: Investment : $10,000 Stock price: $40 Initial margin: 70% Broker fees : 10%…

Q: Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. The…

A: Stock price:The market value of a certain stock or share in a corporation is referred to as the…

Q: You short sell 200 shares of stock at $48.23 per share and cover your short positio three months…

A: Rate of return is the amount of profit or loss on the investment made as a percentage of initial…

Q: You buy 300 shares of Suncor Energy for $25 per share and deposit initial margin of 50%. The next…

A: Actual margin Actual Margin is the sum that is to your Account's credit and is labeled as Actual…