Question: Question 6 The initial margin requirement on a stock purchase is 5 5 % . You fully use the margin allowed to purchase 2 0

Question 6
The initial margin requirement on a stock purchase is 55%. You fully
use the margin allowed to purchase 200 shares of TSLA at $548.74.
The maintenance margin requirement is 23%. At which share price
would first receive a Margin Call? Enter your answer in the box below.
Round your answer to two decimals.
Question 6 The initial margin requirement on a stock purchase is

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!

Q:

I need help with this question QUESTION 1 The initial margin requirement on a stock purchase is 40%. You fully use the margin allowed to purchase 150 shares of MSFT at $50. If the price drops to $42,...

Q:

QUESTION 11 The initial margin requirement on a stock purchase is 60%. You fully use the margin allowed to purchase 150 shares of MSFT at $30. If the price drops to $26.4, what is your percentage...

Q:

The initial margin requirement on a stock purchase is 49%. You fully use the margin allowed to purchase 200 shares of TSLA at $325.00. The maintenance margin requirement is 25%. At which share price...

Q:

The initial margin requirement on a stock purchase is 54%. You fully use the margin allowed to purchase 200 shares of TSLA at \$317.42. The maintenance margin requirement is 25\%. At which share...

Q:

The initial margin requirement on a stock purchase is 50%. You fully use the margin allowed to purchase 10 shares of Tesla at $350. Call money rate is 8% p.a. and interests are compounded monthly....

Q:

The initial margin requirement on a stock purchase is 50%. You fully use the margin allowed to purchase 100 shares of a stock at $230 per share. An interest rate of 5% per year is charged on the...

Q:

The initial margin requirement on a stock purchase is 5 7 % . You fully use the margin allowed to purchase 1 0 0 shares of MSFT at $ 2 2 5 . If the price drops to $ 1 6 0 . What is your rate of...

Q:

The initial margin requirement on a stock purchase is 50%. You fully use the margin allowed to purchase 100 shares of Boeing at $25. If the price drops to $22, what is your percentage loss? A) 12% B)...

Q:

VThe margin requirement on a stock purchase is 2 5 % . You fully use the margin allowed to purchase 1 0 0 shares of MSFT at $ 2 5 . If the price drops to $ 2 2 , what is your percentage loss?The...

Q:

can you explain why highlighted is right 3. You short-sell 100 shares of Tuckerton Trading Co, now selling for $50 per share. What is your maximum possible gain, ignoring transactions cost? A. $50...

Q:

What is the price of a 1000 annual coupon bond, coupon rate of 10%, matures in 4 years, and YTM is 10%? What is the price if the YTM increases to 12%? What is the price if the YTM decreases to 8%?

Q:

A partial adjusted trial balance for Barone Company is given in E4-13. Instructions Prepare the closing entries at January 31, 2014.

Q:

Pat purchased several pieces of art in 2 0 1 6 and sold them for a significant gain in 2 0 2 3 . The tax rate on these gains is capped at what percent?

Q:

https://media.cheggcdn.com/media/e59/e5900ba1-02b0-44ab-8246-fb980e24e7c1/phpDkQ6Ux

Q:

=+ d. Income per worker in Richland is actually

Q:

=+16 times income per worker in Poorland. Can you explain this fact by changing the value of the parameter ? What must it be? Can you think of any way of justifying such a

Q:

=+c. If the CobbDouglas parameter takes the conventional value of about 1/3, how much higher should income per worker be in Richland compared to Poorland?