Question: Please answer question #3 You borrowed $8,000 to purchase 300 shares of Stock Y at $40 per share. The interest rate on the loan is

Please answer question #3

Please answer question #3 You borrowed $8,000 to purchase 300 shares ofStock Y at $40 per share. The interest rate on the loan

You borrowed $8,000 to purchase 300 shares of Stock Y at $40 per share. The interest rate on the loan is 8%. The maintenance margin ratio is 30%. Below what stock price will you receive a margin call? Select one: 40.56 41.15 44.62 38.67 Continued with previous question. Suppose the margin trader wants to limit his investment return no worse than -10%, what order instruction should he give with the margin position? Select one: a. stop-buy order b. stop-loss order C. limit buy order d. limit sell order Continued with the previous questions. What stop price should the trader give to limit his return no worse than -10% Select one: 417 Continued with the previous questions. What stop price should the trader give to limit his return no worse than 10% Select one: b. $36.5 c. $38.4

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!