Question: Trading on Margin Buying on Margin: Example: Amulya bought 100 shares of Shopify Inc. at $100 each, with 50% marging and 12% interest, compounded monthly.

 Trading on Margin Buying on Margin: Example: Amulya bought 100 shares

Trading on Margin Buying on Margin: Example: Amulya bought 100 shares of Shopify Inc. at $100 each, with 50% marging and 12% interest, compounded monthly. In a month, how far can the price go down before Amulya receives a margin call (month end)? One month later, the price of Shopify is at 65 dollars. What should you do to margin up your account if you are. allowed to inject additional cash to pay the loan Assume that at inception of the account (the day the account was created), the price suddenly spiked to 120. How many additional shares can Amulya purchase without additional cahs? Trading on Margin Buying on Margin: Example: Amulya bought 100 shares of Shopify Inc. at $100 each, with 50% marging and 12% interest, compounded monthly. In a month, how far can the price go down before Amulya receives a margin call (month end)? One month later, the price of Shopify is at 65 dollars. What should you do to margin up your account if you are. allowed to inject additional cash to pay the loan Assume that at inception of the account (the day the account was created), the price suddenly spiked to 120. How many additional shares can Amulya purchase without additional cahs

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!