Suppose that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is
Question:
Suppose that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like following the short?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
Following the short your account is as follows Notice that you ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Question Posted:
Students also viewed these Business questions
-
a. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000 and borrow the rest. What would your account balance sheet look like? What is your margin? b....
-
You sell short 100 shares of a stock with a price of $50 that has a 60% margin requirement. At the end of the trade, what is the minimum amount of cash that should be in your account? You sell short...
-
Suppose again that Melvin's Bank starts with the balance sheet in Table. Then the bank sells $10 of loans for $10 of cash. a. What is the immediate effect on the balance sheet? b. After the loan...
-
In Exercises use a computer algebra system to analyze the graph of the function. Label any extrema and/or asymptotes that exist. f(x) || 1 xx2
-
Determine the height and diameter of a vertical flash drum for the conditions shown in Figure 7.48. Ibmol/h nC4 nC5 nC6 187.6 176.4 82.5 224.3F 102.9 psia Ibmol/h nC4 nC5 Cs 112.4 223.6 217.5 Figure...
-
What are the characteristics of a company that would be more likely to use process costing than job order costing?
-
Consider the simple linear regression model fit to the tank pressure and volume data in Problem 2.16. Problem 2.16 Carroll and Spiegelman ("The Effects of Ignoring Small Measurement Errors in...
-
A penny of mass 3.10 g rests on a small 20.0-g block supported by a spinning disk (Fig. P6.60). The coefficients of friction between block and disk are 0.750 (static) and 0.640 (kinetic) while those...
-
A sole proprietorship was started on January 1, Year 1, when it received $50,000 cash from Marlin Jones, the owner. During Year 1, the company earned $39,200 in cash revenues and paid $22,940 in cash...
-
Whispering issued an 9%, 10-year $1,800,000 bond to build a monorail mass transit system. The city received $1,587,988 cash from the bond issuance on January 1, 2025. The bond yield is 11%. Interest...
-
Determine the amount of short interest currently outstanding in Tesla (TSLA) stock.
-
a. What are the differences between full-service and deep-discount brokers? b. What is the SIPC? How does SIPC coverage differ from FDIC coverage?
-
Refer to Exercise 13.9. Assume that the company identies poor plant layout as the root cause of wait time and move time. Required: 1. Express an improvement strategy as a series of if-then statements...
-
Programming Exercise 6 in Chapter 2 was the Sales Tax program. For that exercise you were asked to design a program that calculates and displays the county and state sales tax on a purchase. If you...
-
The following data have been reported for equilibrium adsorption of benzene on certain activated carbon at \(306 \mathrm{~K}\). (a) Fit a Langmuir-type isotherm to these data. (b) Fit a...
-
The membrane in Example 9.1 is replaced with another of the same thickness, but with a permeability of 300 barrer for solute A. Calculate the transmembrane flux of solute A if the film coefficients...
-
Take the \(z\)-transform of (6.2.6) and show that \(\mathbf{X}(z)=\mathbf{G}(z) \mathbf{Y}(z)\), where \(\mathbf{G}(z)=(z \mathbf{U}-\mathbf{M})^{-1} \mathbf{D}^{-1}\) and \(\mathbf{U}\) is the unit...
-
When developing a marketing strategy using new digital media, a marketer must be aware of the strengths and weaknesses of these new media. Digital media are relatively new to the field of marketing...
-
Discuss the restrictions placed on like-kind exchanges between related parties. Include the reasoning behind the restriction in your discussion.
-
What are some of the various ways to implement an awareness program?
-
Why is preferred stock "preferred"?
-
What is the PE ratio reported for stocks in The Wall Street Journal? In particular, how is it computed?
-
Explain how volume is quoted for stocks, corporate bonds, futures, and options.
-
Patty Stone started a new store to sell backpacks in January. The following events occurred in the first month of operations. a. Issued 5,000 shares of $1 par value common stock to investors for cash...
-
Discuss the criteria that are being needed to make the presence for an e-commerce business in today's compe.itive marketplace. Now, do your resea ch on an e- comme.ce based company's...
-
Helix Corporation uses the weighted - average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material...
Study smarter with the SolutionInn App