a) A Trader held HK$1,750,000 in a margin account after he bought 10,000 shares of (HKEX:700)...

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a) A Trader held HK$1,750,000 in a margin account after he bought 10,000 shares of (HKEX:700) Tencent at HK$320 on 1st September 2022. Unfortunately, the stock price went down to HK$190.72 on 28th October 2022. But., the price rebounded up to HK$272.78 at the end of November. When was the margin call made (the end of the day)? Date: i) ii) mm How much extra money does he provide to bring the balance up to the required level? (The administration cost was not considered) Extra money required for the margin call: b) The trader provides an extra $500,000 due to a margin call. He sold out all shares at $200 on 31/10/2022, i) What is the maximum number of shares to be sold (short sell) after he sold out all shares on 31/10/2022? Number of shares: d d ii) 1 iv) /2022 yyyy 056 c) He sold 3,200 shares (short sell) of (HKEX:700) Tencent at HK$200 on 31/10/2022. When was the margin call made again (at the end of the day)? Date: 1 202 2 How much extra money does he provide to bring the balance up to the required level? (The administration cost was not considered) Extra money required for the margin call: He decided to close all positions at 233-5 on 8/11/2022 without providing extra money. What is the total loss (from 1st September)? 1 0 0 0 60 a) A Trader held HK$1,750,000 in a margin account after he bought 10,000 shares of (HKEX:700) Tencent at HK$320 on 1st September 2022. Unfortunately, the stock price went down to HK$190.72 on 28th October 2022. But., the price rebounded up to HK$272.78 at the end of November. When was the margin call made (the end of the day)? Date: i) ii) mm How much extra money does he provide to bring the balance up to the required level? (The administration cost was not considered) Extra money required for the margin call: b) The trader provides an extra $500,000 due to a margin call. He sold out all shares at $200 on 31/10/2022, i) What is the maximum number of shares to be sold (short sell) after he sold out all shares on 31/10/2022? Number of shares: d d ii) 1 iv) /2022 yyyy 056 c) He sold 3,200 shares (short sell) of (HKEX:700) Tencent at HK$200 on 31/10/2022. When was the margin call made again (at the end of the day)? Date: 1 202 2 How much extra money does he provide to bring the balance up to the required level? (The administration cost was not considered) Extra money required for the margin call: He decided to close all positions at 233-5 on 8/11/2022 without providing extra money. What is the total loss (from 1st September)? 1 0 0 0 60

Answer rating: 100% (QA)

i The margin call is typically made when the accounts equity falls below a certain percentage of the margin requirement To calculate the margin call date we need to compare the accounts equity to the ... View the full answer