You are bullish on Jawwal stock. You bought 100 shares of common stock at $60 per share. You borrowed 50% of the value of stocks purchased from your broker to help pay for the purchase. The interest rate on the loan was 0.06 .

What is the margin in your account when you first purchase the stocks?

What will be the value of stocks purchased if the price reaches $80 by the end of the year?

If the price reaches $80 per share by the end of the year, what is the remaining margin in your account.

What is the rate of return on your investment?

when you first purchase the stocks?

What will be the value of stocks purchased if the price reaches $80 by the end of the year?

If the price reaches $80 per share by the end of the year, what is the remaining margin in your account.

What is the rate of return on your investment?

How far does the price of Jawwal stock have to fall for you get a margin call if the maintenance margin is 30% ? Assume that the price fall happens immediately.

Answer rating: 100% (QA)

Lets break down the information step by step 1 Initial Purchase Number of shares 100 Purchase price ... View the full answer