Security 1 is presently trading for 88.38. You decide to purchase 1,000 shares. Security 2 is...
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Security 1 is presently trading for 88.38. You decide to purchase 1,000 shares. Security 2 is presently trading for 88.17, and you decide to purchase 1,150 shares. Suppose you have an IMR of 50% and an MM of 25%. Interest on any borrowed funds will be charged 8% APR, monthly compounding, and you intend to utilize your margin to capacity. There is no brokerage fee to short, and you do not earn any interest on cash deposited. All your accounts are aggregated. Exactly 3 months from now, you notice that Security 1 is trading for 86.43 and Security 2 is trading for 78.89. What will the equity in your account be at this time? Round to 4 decimal places, as 110,545.6322 for example. Show all your work in order to receive credit. Security 1 is presently trading for 88.38. You decide to purchase 1,000 shares. Security 2 is presently trading for 88.17, and you decide to purchase 1,150 shares. Suppose you have an IMR of 50% and an MM of 25%. Interest on any borrowed funds will be charged 8% APR, monthly compounding, and you intend to utilize your margin to capacity. There is no brokerage fee to short, and you do not earn any interest on cash deposited. All your accounts are aggregated. Exactly 3 months from now, you notice that Security 1 is trading for 86.43 and Security 2 is trading for 78.89. What will the equity in your account be at this time? Round to 4 decimal places, as 110,545.6322 for example. Show all your work in order to receive credit.
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