You decide to sell short 350 shares at a price of $74.53 each. The initial margin...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You decide to sell short 350 shares at a price of $74.53 each. The initial margin requirement is 50%. Part 1 How much money do you have to contribute to the account? Correct 13042 Assets Sale proceeds (N'Pa) 26,086 Value of borowed shares (N'P) 26,086 Liabilities & Equity Cash (50% of above) 13,043 Equity 13,043 Total 39,128 Total 39,128 You have to contribute $13,043. Part 2 If the price rises to $86.82 after 7 months, what is the new percentage margin? 29.84 Try again You decide to sell short 350 shares at a price of $74.53 each. The initial margin requirement is 50%. Part 1 How much money do you have to contribute to the account? Correct 13042 Assets Sale proceeds (N'Pa) 26,086 Value of borowed shares (N'P) 26,086 Liabilities & Equity Cash (50% of above) 13,043 Equity 13,043 Total 39,128 Total 39,128 You have to contribute $13,043. Part 2 If the price rises to $86.82 after 7 months, what is the new percentage margin? 29.84 Try again
Expert Answer:
Answer rating: 100% (QA)
Part2 Now stock price rises to 8682 Assets Liabilities ... View the full answer
Related Book For
Statistics The Exploration & Analysis of Data
ISBN: 978-1133164135
7th edition
Authors: Roxy Peck, Jay L. Devore
Posted Date:
Students also viewed these accounting questions
-
How much money do people spend on graduation gifts? In 2007, the National Retail Federation (www.nrf.com) surveyed 2815 consumers who reported that they bought one or more graduation gifts that year....
-
How much money do people spend on graduation gifts? In 2007, the National Retail Federation (www.nrf.com) surveyed 2,815 consumers who reported that they bought one or more graduation gifts that...
-
You buy 400 shares of stock at a price of $75 and an initial margin of 45 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call?
-
The lower-of-cost-or-net realizable value rule for inventory is an example of the application of: (a) the conservatism convention. (b) the historical cost principle. (c) the materiality concept. (d)...
-
CanComp, a Canadian computer manufacturer, will be delivering a large computer system to a German firm in six months. CanComp expects to receive payment of US$1.5 million at that time. Currently the...
-
Consider two identical glasses of water, one stationary and the other moving on a horizontal plane with constant acceleration. Assuming no splashing or spilling occurs, which glass will have a higher...
-
The \(x\)-velocity profile in a certain laminar boundary layer is approximated as follows \[ u=U_{0} \sin \left(\frac{\pi}{2} \frac{y}{0.1 \sqrt{x}} ight) \] Determine the \(y\)-velocity, \(v(x, y)\).
-
1. Workpaper entries normally: a. Are posted to the general ledger accounts of one or more of the affiliates b. Are posted to the general ledger accounts only when the financial statement approach is...
-
If an investor invests in a bond that has $1,000 par and pays 7% coupons semi-annually, which matures in 3 years. Assume yield stays at 3% compound semiannually and all received coupon payments will...
-
The following are the financial statements for Nailsea plc for the years ended 30 June 2014 and 2015: Income statement for years ended 30 June Statements of financial position as at 30 June There...
-
What is substantive law? Multiple Choice The code of conduct of government bodies The procedures followed by municipalities in creating ordinances The procedures followed by Congress to make statutes...
-
What are the different skills and functions of a manager?
-
Planning is A social process An intellectual process An integrated process None of the above
-
Download a conversation with Amy Chua, Yale professor of law and author of World on Fire: How Exporting Free Market Democracy Breeds Ethnic Hatred and Global Instability...
-
Who among these comes under the specialist manager? Training manager Finance manager Purchase manager HR manager
-
Which of the following are the environmental factors affecting business? Suppliers Customers Physical resources All of the above
-
Discuss which theory (esp. realism, liberalism, constructivism) best explains the post-Cold War security structure and how it has changed over time." And yes, you may use multiple theories to explain...
-
What is the difference between adsorption and absorption?
-
Because some homes have selling prices that are much higher than most, the median price is usually used to describe a typical home price for a given location. The three accompanying quotes are all...
-
The article Tobacco and Alcohol Use in G-Rated Childrens Animated Films (Journal of the American Medical Association [1999]: 1131 1136) reported exposure to tobacco and alcohol use in all G-rated...
-
The amount of aluminum contamination (in parts per million) in plastic was determined for a sample of 26 plastic specimens, resulting in the following data (The Log Normal Distribution for Modeling...
-
What is the difference between old classical and new classical economics?
-
What is the difference between traditional Keynesian and new Keynesian economics?
-
Why does monetary policy operate with a long and variable lag? Give an example to illustrate your explanation.
Study smarter with the SolutionInn App