Question: Answer serial wise a,b,c,d An initial margin requirement is 48% and maintenance margin of 55 %. An investor buys GPH, 9500 shares of stock on

Answer serial wise "a,b,c,d"

Answer serial wise "a,b,c,d" An initial margin requirement is 48% and maintenance

An initial margin requirement is 48% and maintenance margin of 55 %. An investor buys GPH, 9500 shares of stock on margin at Tk. 92.55 per share. The price of the stock subsequently drops to tk. 47.60. a. Find the amount investor has to deposit for initiating the transaction. b. What is the actual margin at tk. 57.65 share price is the account restricted? c. If the price rises to tk. 66.50, is there a margin call? d. Show the amount of margin call is required to bring back account into operational at price of tk. 53.90

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!