Question: 1. The current exchange rate between the U.S. dollar and the Japanese yen is 113(yen/$). That is, 1 dollar can buy 113yen. How many dollars

1. The current exchange rate between the U.S. dollar and the Japanese yen is

113(yen/$). That is, 1 dollar can buy 113yen. How many dollars would you get for 800 Japanese yen?

2. An investor recently sold some stock in a European company that was worth 20,000euros. The US$/euro exchange rate is currently

1.305. meaning that 1 euro buys 1.305 dollars. How many U.S. dollars will the investor receive?

Assume that an investor buys 100 shares of stock at $ 53 per share, putting up a 58 % margin.

a. What is the debit balance in this transaction?

b. How much equity capital must the investor provide to make this margin transaction?

4. Assume that an investor buys100 shares of stock at $ 54 per share, putting up a 55 % margin. If the stock rises to $ 61 per share, what is the investor's new marginposition? If the stock rises to $ 61 per share, the investor's new margin position is?

5. An investor short sells 100 shares of a stock for $19 per share. The initial margin is 51%. How much equity will be initially required in the account to complete thistransaction? In other words, what is the initial margin deposit?

6. An investor short sells 400 shares of a stock for $ 20.26 per share. The initial margin is 55%, and the maintenance margin is 25%. The price of the stock rises to $ 28.49

per share. What is the margin, and will there be a margin call?

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