You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its ye broker tells you that your margin requirement is 45 percent and that the commission While you are short the stock, Charlotte pays $2.50 per share dividend. At the end of o shares of Charlotte at $45 to close out your position and are charged a commission of

You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its ye broker tells you that your margin requirement is 45 percent and that the commission While you are short the stock, Charlotte pays $2.50 per share dividend. At the end of o shares of Charlotte at $45 to close out your position and are charged a commission of

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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Similar questions

Marty Market owns 200 shares of Light Bulb Utility. The company pays a $6 per share dividend and the share price is $ 156. How many shares would Marty need to sell to create a homemade dividend of $15 per share?
National Grid PLC. (ticker: NGG) is currently trading at $59.11 per share. But youare bearish on the stock and believe that the price will fall to $56.32 in two weeks. Youdecide to short sell 100 shares. Your broker will charge 1.7% interest for lending shares toyou, independent of the length of the loan. You are required to pay the interest when youclose your short sale position. What is your expected investment outcome? A. $132.00 profitB. $178.51 profitC. $196.25 profitD. $210.00 profitE. $379.49 profit
Please answer is 24840, only post if your answer comes this with explanation and concept. Thabks!
You have a margin account and deposit Rs.90,000. Assuming the prevailing marginrequirement is 20%, commissions are ignored and D.G.K Cement stock is selling atRs.55 per share while Askari Cement stock is selling at Rs. 85 per share. You invest 40%of your investment in D.G.K cement while remaining is deposited in Askari cement.a. How many shares of each stock can you purchase using the maximum allowablemargin if you invest in both?b. What is your total and percentage profit (loss) if:1. the price of D.G.K Cement Rises to Rs.65 per share while Askari Cement stockrises to Rs. 97 per share?2. the price of D.G.K Cement reduces to Rs.42 per share while Askari Cementstock reduces to Rs. 76 per share?c. If you invest all money in D.G.K cement ONLY and the maintenance margin is 25%,to what price can D.G.K Cement stock fall before you will receive a margin call?d. If you invest all money in Askari cement ONLY and the maintenance margin is 25%,to what price can Askari cement stock fall before you…
Jackie has posted $45,000 in her margin account. If intial margin requirements are 50%, and Turtle Industries is currently selling at $25 per share: How many shares of Turtle can Jackie purchase? What is Jackie’s profit if Turtle’s price rises to $40?
Suppose Tyler initially pays $76,000 toward the purchase of $108,000 worth of stock, borrowing the remaining balance from one of notorious brokers, Diego. In this case, Tyler’s initial percentage margin is closest to A. 70.37%. B. 60.50%. C. 39.50%. D. 29.63%. Clear my choice
. Which of the followings is the most likely answer? Mr. Hamish paid a premium of $5 to buy a put on a stock that is currently valued at $60. The put strike price is $55. The maximum profit (including the premium) is ______ a) $0 b) $50 c) $55 d) $60
You own 6,000 shares of Irri-gate Co. The company has decided to pay a special dividend of $1.50 per share. Dividend payments are taxed at 15 per cent. You intend to reinvest your dividend back into the company, but the company does not have a dividend reinvestment program. To reinvest through your broker, you will have to pay a $55 commission. If the company's shares are trading at $13.50 following the dividend payment, how many additional shares will you be able to purchase?

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