HomeworkLib
Question

Brad purchases10 shares of AMZN on 60% initial margin for the price of $2100 per share....

Brad purchases10 shares of AMZN on 60% initial margin for the price of $2100 per share. What will be his percent margin if the share price moves to $1800?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

When the price is $2,100

His initial margin is 60%, which is 2,100 * 0.6 = 1,260

Borrowed amount = 2,100 - 1,260 = 840

When the price drops to $1,800, his margin = 1,800 - 840 = 960

His percent margin = 960/1,800 = 0.5333333333 = 53.33333333%

Can you please upvote? Thank You :-)

0 0
Add a comment
Know the answer?
Add Answer to:
Brad purchases10 shares of AMZN on 60% initial margin for the price of $2100 per share....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • An investor short sells 200 shares of a stock for $20.31 per share. The initial margin...

    An investor short sells 200 shares of a stock for $20.31 per share. The initial margin is 51%, and the maintenance margin is 26%. The price of the stock rises to $28.68 per share. Wha is the margin, and will there be a margin call? The margin in the account is 1%. Round to the nearest percent.)

  • A short seller has sold 200 shares at $180 per share with an initial margin of...

    A short seller has sold 200 shares at $180 per share with an initial margin of 60%. A few days later the stock paid $4 dividends per share. What is the profit to the short seller if the share price is now $160? 4,000 4,800 -4,800 3,200

  • Zach has sold 400 shares of IBM at $150 per share. The initial margin requirement for...

    Zach has sold 400 shares of IBM at $150 per share. The initial margin requirement for the short sale was 60%. The next week the share price became $160. What is Zach's percentage margin at this point? 50% 43.8% 62.5% 40%

  • Assume that you just short sold 300 shares of Spencer stock at $120 per share. The initial margin requirement (IMR...

    Assume that you just short sold 300 shares of Spencer stock at $120 per share. The initial margin requirement (IMR) is 50 percent and the maintenance margin requirement (MMR) is 30 percent. b. What will be your rate of return if the stock price goes to $127 per share over the next 60 days and you close your position at the end of that time? (7 pts)

  • You have just purchased 200 shares of stock on margin at $60 per share. The broker...

    You have just purchased 200 shares of stock on margin at $60 per share. The broker lent you $5,000 to help pay for the purchase. a. The initial margin in the account at the time you purchased the stock is 7000 b. If the share price falls to $35 per share, the remaining margin in the account is ______ c. If the maintenance margin requirement is 35%, the amount of the margin call will be _____

  • You just sold 1,200 shares of stock short at a price per share of $13.50. The...

    You just sold 1,200 shares of stock short at a price per share of $13.50. The initial margin requirement is 60 percent and the maintenance margin is 30 percent. What is your initial equity position? $6,480 $7,520 $9,720 $10,520 $16,200

  • Brad purchased 10 shares of stock for $10 per share. He paid a $5 commission. One...

    Brad purchased 10 shares of stock for $10 per share. He paid a $5 commission. One year later, he purchased another 10 shares at $9 per share. Again, he paid a $5 commission. In the second year, his disappoint got the best of him and he sold 10 shares ar $7 per share, paying another $5 commission. At the end of the third year, Brad liquidated his holdings, paying $5 in commissions at $8 per share What was his dollar-weighted...

  • 23. Today, you are purchasing 100 shares of stock on margin. The purchase price per share...

    23. Today, you are purchasing 100 shares of stock on margin. The purchase price per share is $35. The initial margin requirement is 70 percent and the maintenance margin is 30 percent. The call money rate is 4.5 percent and you are charged 1.6 percent over that rate. What will your rate of return be if you sell your shares one year from now for $37 a share? Ignore dividends. A. 5.55 percent B. 6.42 percent C. 7.18 percent D....

  • An investor short sells 200 shares of a stock for $20 per share. The initial margin...

    An investor short sells 200 shares of a stock for $20 per share. The initial margin is 60%. How much equity will be initially required in the account to complete this transaction? In other words, what is the initial margin deposit? The initial margin deposit is $ (Round to the nearest dollar.)

  • You short sold 350 shares of stock at a price of $32 and an initial margin...

    You short sold 350 shares of stock at a price of $32 and an initial margin of 60 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

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT