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The price of Apple stock is currently $98.16 and you decide to sell short 490 shares. The inital margin is 60%.
You short sold 500 shares of stock at a price of 36 dollars and an inital margin of 75 percent. if the maintenance margin is 25 percent, at what share price will you receive a margin call? what is your account equity at this stock price? Margin call price? Account equity?
You want to short sell 100 shares of PQR using a 60% margin. The maintenance margin is 30%. The current price of PQR is $40. How much money did you have to invest today? What price will trigger a margin call? What is the overall rate of return on your investment if the stock is selling at a price of $48 in 1 year? What is the overall rate of return on your investment if the stock is selling at...
You are bearish on a technology stock and decide to sell short 100 shares at the current market price of $36.00 per share. a.) How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position b.) How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
1. You are bearish on Telecom stock and decide to sell short 100 shares at the current market price of $50 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short...
You are bearish on GE stock and decide to sell short 50 shares at the current market price of $160 per share. (a) How much cash must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? (b) How high can the stock price rise before you get a margin call if the maintenance margin is 25%?
You sell short 700 shares of Microsoft that are currently selling at $60 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $54? (Ignore any dividends.)
3. If you sell 100 shares short at $40 on 60% margin and buy them back a year later at $36, what would be your rate of return? Assume commissions are 2%, interest is 1% and dividends per share are $2. (5)
You short sold 1,200 shares of stock at a price of $30 and an initial margin of 75 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call? What is your account equity at this stock price? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin call price Account equity 2 decimal places required.