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: 50% (8 reviews)
Margin is the account equity divided by the cost to cover The account equity would be the i...View the full answer
Answered By
Jeff Omollo
As an educator I have had the opportunity to work with students of all ages and backgrounds. Throughout my career, I have developed a teaching style that encourages student engagement and promotes active learning. My education and tutoring skills has enabled me to empower students to become lifelong learners.
5.00+
5+ Reviews
42+ 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
-
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?...
-
The initial margin is 50% and the maintenance margin is 25%. A customer is long 100 shares of a stock that is currently worth $54. A customer's margin loan is $6,000. How much additional cash does...
-
Josh Kuchin is studying for the next accounting mid-term examination. What should Josh know about? (a) Departing from the cost basis of accounting for inventories (b) The meaning of "market" in the...
-
In the chapter, when describing Figure 2-4a, it was argued that the Received and Summarizes relationships and TREASURER entity were not necessary. Within the context of this explanation, this is...
-
1. If topaz is harder than quartz, then it will scratch quartz and also feldspar. Topaz is harder than quartz and it is also harder than calcite. Therefore, either topaz will scratch quartz or it...
-
Recall that simulated squared values from Exercise 2.7 follow F distributions. Use geom_qq and geom_qq_line to plot Q-Q plots of the simulated squared values against the appropriate $\mathrm{F}$...
-
For 3 generations, the Shipman family has sent its children to Yale University, preparing them for successful professional careers. The Wilma Shipman Trust was established in the 1950s by Amys late...
-
John estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -5,700 3 1 1,325 4 2 2,148 5 3 3,528 The required return for the project is 8%. What is the IRR for the project?
-
A drunk starts out from a lamppost in the middle of a street, taking steps of equal length either to the right or to the left with equal probability. What is the probability that the man will again...
-
An investor short sells 100 shares of a stock for $20 per share. The initial margin is 50%. Ignoring transaction costs, how much will be in the investor's account after this transaction if this is...
-
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 rises to $28 per share. What is the margin, and...
-
On June 1, 2016, Ricks Restaurant decides to invest excess cash of $41,800 from the tourist season by purchasing 2,200 shares of Bison, Inc. stock at $ 19 per share. At year-end, December 31, 2016,...
-
What is moral hazard? How does it relate to asymmetric information? How does adverse selection relate to asymmetric information?
-
Look for a recent IPO of stock. Who was the underwriter? What was the pricing of the shares? How did they fare in subsequent (secondary market) trading?
-
Write the expression of the skiers total energy at a given time. We denote x dx/dt, y dy/dt. What is the relation between the potential energy and the kinetic energy owing to energy conservation?...
-
Check that with this definition of the variable x, the potential energy of the skier at point (x, y) is V = mgx sin . A skier slides down a snowy plane slope. The plane makes an angle with respect...
-
We want to determine the relative intensities I1 and I2 of the electric current in the two legs of the simple electric circuit shown in Fig. 2.8, whose resistances are R1 and R2. The incoming current...
-
What are the defining characteristics of transformational and charismatic leaders?
-
Identify the Critical Infrastructure Physical Protection System Plan.
-
Coastal Rail is currently trading at $35 per share. The company pays a quarterly dividend of $0.92 per share. What is the dividend yield?
-
Assume the risk-free rate is 3% and the expected return on the market portfolio is 10%. Use the capital asset pricing model to find the required return for each of the following securities. Security...
-
Create an Excel spreadsheet that graphs the portfolio return and standard deviation combinations found in Problem 5.10 for Home Depot and Lowes. Data From Problem 5.10 Use the table of annual returns...
-
Hall & Company issues $ 1 0 0 , 0 0 0 , 0 0 0 in 6 % bonds with detachable warrants of 1 0 warrants for each $ 1 , 0 0 0 bond. The bonds are issued at 9 9 . Record the issuance under the following...
-
Assume that hein acquired Dolan Development last year. Hein recorded the following intangible assets on the date of acquisition: Goodwill: $ 1 , 5 0 0 , 0 0 0 Dolan Development trademark: $ 6 0 0 , 0...
-
What is the total amount of interest that will be paid of the loan is carried to term with no extra payments made building cost 3 3 0 0 0 0 . loan started im Dec 2 0 2 3 worh a 7 . 5 % interest rate...
Study smarter with the SolutionInn App