An investor short sells 100 shares of a stock for $20 per share. The initial margin is
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
The investor will deposit the margin ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Question Posted:
Students also viewed these Banking questions
-
How much will be required on February 1 to pay off a $3000 loan advanced on the previous September 30 if the variable interest rate began the interval at 10.7%, rose to 11.2% effective November 2,...
-
A trader buys 200 shares of a stock on margin. The price of the stock is $20. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially?...
-
You want to buy 100 shares of a stock currently trading at $50 per share. Your brokerage firm allows margin sales with a 50% opening margin and a maintenance margin of 25%. What does this mean? If...
-
Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that: A. higher...
-
Virtual Campus (VC) is a social media firm that specializes in creating virtual meeting places for students, faculty, staff, and others associated with different college campuses. VC was started as a...
-
The monthly Toronto Maple Leafs fan magazines are printed 1 week prior to the start of sales for each monthly issue during the season. Attendance averages 90 000 screaming and loyal Leafs fans during...
-
For the accounts of her business Rebecca Goumas uses sales, purchases, cash receipts, cash payments and general journals along with subsidiary ledgers for accounts receivable and accounts payable....
-
Cheng Furniture Company refinishes and reupholsters furniture. Cheng Furniture uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are...
-
1.XYZ Corp. just paid an annual dividend of $3 per share on its common stock. This dividend is expected to grow at a 10 percent annual rate for two years, after which it is expected to grow at a 6...
-
An unmarried teacher at a Catholic school ws terminated after she revealed that she was pregnant by artificial insemination. The teacher, who is not Catholic herself, taught computer science. She did...
-
Not long ago, Jack Edwards bought 200 shares of Almost Anything Inc. at $45 per share; he bought the stock on margin of 60%. The stock is now trading at $60 per share, and the Federal Reserve has...
-
An investor short sells 100 shares of a stock for $20 per share. The initial margin is 50%, and the maintenance margin is 30%. The price of the stock falls to $12 per share. What is the margin, and...
-
Who are innovators? Early adopters? Laggards?
-
Financial information for Magic Ltd. is as follows: Magic Itd. Balnce Sheet (Partial) 2015 Assets Cash Accounts receivables Inventory 2016 Land (undeveloped) Total assets Plant and equipment, net...
-
Determine the beam column shown below is capable of safely carrying the applied loads. Given loads were determined by using LRFD provisions and bending moment diagrams are obtained from second order...
-
Harrington Horticulture Co. issues 15-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average.
-
3. Anne is studying for a course that will give her a high income in the future. She has no money at present, but she knows that when she completes the course she will have 360 (special money, do not...
-
An investment of $4664.35 earns interest at 6.5 % per annum compounded annually for 3 years at that time the interest rate is changed to 3.8% compounded semi annually how much will the accumulated...
-
What is the role of the herd health manager?
-
Write a paper about how diet relates to breast cancer in women study design to use: case control study purpose & rationale the purpose of this final project is to utilize the methods and...
-
Each year the financial media publishes lists of the top-performing mutual fund managers. And every year there are some fund managers who earn much higher returns than the market average, and in some...
-
Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at Nabor have...
-
Create a spreadsheet that applies the variable-growth model to predict the intrinsic value of the Rhyhorn Company common stock. Assume that dividends will grow at a variable rate for the next three...
-
Characterize the nature of motivation, including its importance and focus Identify and describe the need theories on motivation. Identify and describe the behavior theories on motivation. Identify...
-
Calculate the amount that Astrid should withdraw from her college savings fund of $21000 if she wishes to withdraw equal amounts at the end of each month for four years. The annual nominal interest...
-
Jason borrows $ 10300 for the next 4 years at a variable interest rate. Assume that the interest accumulates for 4 years at an annual nominal rate of 11% compounded quarterly. Calculate the...
Study smarter with the SolutionInn App