Holly buys 500 shares of Untimely, Inc. at $46 on a 60% initial margin requirement. Maintenance margin is 35% and interest rates on margin loans are 11%.  In 9 months, the stock is at $58.  

A. What is Holly's margin at 58?

B. What is the excess and buying power at 58?

C. When will she get a margin call?

D. If she sells at 58, what is her HPR?

E. If she had done the same trade on a cash basis, would would her HPR be?

Answer rating: 100% (QA)

Solution 1 Borrowed amount Shares purchased Share price 1 initial margin Borrowed amount 500 46 040 ... View the full answer