1. An investor purchases 2000 shares of a stock with a market price of $48/share on...
1. An investor purchases 2000 shares of a stock with a market price of $48/share on a 50% margin (i.e., takes a 50% cash loan from the broker.) The investor is required to maintain a 50% maintenance margin.
A. What is the investor's margin if the price of the stock increase to $53/share?
B. If the price of the stock drops to $43 / share, what is the investor's margin?
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1. An investor purchases 2000 shares of a stock with a market
price of $48/share on...
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QUESTION 5 An investor buys $19 thousand dollars of ABT stock at $20 per share, using 52% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.5 per share dividend each year. If the stock is sold at the end of the year at $22 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places. QUESTION 6 You sell short...
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An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places
Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...
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