You short sold 1,000 shares of stock at a price of $36 and an initial margin of

Question:

You short sold 1,000 shares of stock at a price of $36 and an initial margin of 55 percent. If the maintenance margin is 35 percent, at what share price will you receive a margin call? What is your account equity at this stock price?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

See More Books

Question Posted: Nov 15, 2018 04:43 AM

See More Questions

You short sold 1,000 shares of stock at a price of $63 and an initial margin of 55 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call? What is your...
You purchased 100 shares of stock at a price of $35.72 per share. Over the last year, you have received total dividend income of $312. What is the dividend yield? A. 3.2% B. 4.4% C. 8.7% D. 9.2% E....
You buy 400 shares of stock at a price of $75 and an initial margin of 45 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call?
Evenflow Power Co. is considering a new project that is a little riskier than the current operations of the company. Thus, management has decided to add an additional 1.5% to the company's overall...
Consider an airplane with a total wing surface of 100 square meters. At a certain speed the difference in the air pressure below and above the wings is 4% of atmospheric pressure. Show that the lift...
The new manufacturing environment is characterized by more flexibility, a readiness to meet customers requirements, smaller batches, continuous improvements and an emphasis on quality. In such...
For Example 6.10, use a simulator to graph the effluent temperature of the methanol reactor as a function of the dodecane flow rate. Data From Example 6.10:- Data From Example 6.8:- Returning to...
Your company is running an audit on the Sleaze Company. Because Sleaze has a bad habit of overcharging its customers, the focus of your audit is on checking whether the billing amounts on its...
Craig and Marc Kielburger are brothers and founders of the groups Free the Children and Leaders Today . Their book describes how they became involved with helping others on a large scale. They weave...
The following activities are part of a project to be scheduled using CPM: a. Draw the network. b. What is the critical path? c. How many weeks will it take to complete the project? d. How much slack...
To an investor, what is the difference between using an advisor and using a broker?
Using the information in Problem 1, construct your equity account balance sheet at the time of your purchase. What does your balance sheet look like if the share price rises to $24? What if it falls...
Water is used as the working fluid in a Carnot-cycle heat engine, where it changes from saturated liquid to saturated vapor at 200C as heat is added. Heat is rejected in a constant-pressure process...
A climate scientist keeps track of the daily temperature, in degrees Fahrenheit, of a lake over the course of six weeks. What is the level of measurement of the data? Explain.
If an ordinary bond has a coupon rate of 12 percent paying semiannual coupons. The yield to maturity is quoted at 16 percent. The bond matures in seven years. What is the bond price? 2 Suppose a bond...
What is the voltage output of a transformer used for rechargeable flashlight batteries, if its primary has 470 turns, its secondary 18.00 turns, and the input voltage is 135 V? b. What input current...
1. how did the differences between rules-based and principle-based standards influence the debate and ultimately the final revenue recognition accounting standard issued by both standard-setters? 2....
Moderator in a nuclear reactor. When fast neutrons are produced in a nuclear reactor, they must be slowed before they can participate in a chain-reaction process. This is done by allowing them to...
Reconsider Prob. 1991. Using an appropriate software, evaluate the effect of glycerin mass flow rate on the surface temperature of the parallel plates and the total rate of heat transfer necessary to...
Find the velocity, acceleration, and speed of a particle with the given position function. r(t) = (t 2 , sin t - t cos t, cos t + t sin t), t > 0
A closed-end fund has total assets of $240 million and liabilities of $110,000. Currently, 11 million shares are outstanding. What is the NAV of the fund? If the shares currently sell for $19.25,...
How does a high-water mark constrain hedge fund managers from earning excess performance management fees?
In Problem 11, suppose the annual operating expense ratio for the mutual fund is 0.75 percent and the management fee is 0.45 percent. How much money did the funds management earn during the year? If...
explain and comments thies pints Has existed for a long time One of the original fast-food establishments High standing Commonly recognized for its root beer. With high-quality cuisine Markets to...
12 Stiler XYZ currently has an enterprise value of $600 million, 20 million shares outstanding, $200 million in excess cash and no debt. Assuming XYZ uses its excess cash to repurchase shares, and...
Explain a summary of the news story in the link below. Your summary should include at least 3 of the marketing concepts learned to date in this course. Be sure to include an accurate, succinct...

You short sold 1,000 shares of stock at a price of $36 and an initial margin of

Question:

Step by Step Answer:

Proceeds from short sale 100036 36000 ...View the full answer

Fundamentals of Investments, Valuation and Management

Students also viewed these Business questions