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Verizon [17]
3 years ago
7

An investor short sells 200 shares of a stock for ​$19 per share. The initial margin is 53​%. How much equity will be initially

required in the account to complete this​ transaction? In other​ words, what is the initial margin​ deposit?
Business
1 answer:
BigorU [14]3 years ago
5 0

Answer:

$2,014

Explanation:

Given:

Number of shares sold = 200 shares

Price per share = $19

Initial margin = 53%

Now,

the total value of the equity = Number of shares × Price per share

or

the total value of the equity = 200 × $19 = $3,800

Therefore,

The initially required equity = value of the equity × Initial margin

or

The initially required equity = $3,800 × 53% = $2,014

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What is the principle of supply and demand?
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Answer:

erm

Explanation:

The more supply, the less demand. The less supply, the more demand.

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3 years ago
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If an investor purchases $1,000 face amount of an 8orporate bond at 93, and the bond is scheduled to mature in 2028, what will t
Nastasia [14]

The amount to be paid on maturity is $100,440

Given that;

Purchase value of 8% corporate bond at 93 = $1,000

Find:

The amount to be paid on maturity

Computation:

Interest amount = Face value of bond × Price × Interest

Interest amount = $1,000 × 93 × 8%

Interest amount = $7,440

The amount to be paid on maturity =  $7,440 + $93,000  

The amount to be paid on maturity = $100,440

In finance, maturity or maturity date is the final payment due date of a loan or other financial instrument such as a bond or term deposit upon which principal (and remaining interest) is paid.

Maturity is the date on which the life of a trade or financial instrument ends, after which it must be renewed or cease to exist. The life of a bond is the period during which its holder receives interest payments on their investment. When the bond matures, the holder will be refunded the face value. The maturity may change if the bond has a put or call option.

Learn more about Maturity here: brainly.com/question/9099365

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7 0
2 years ago
Which of these is NOT an assumption of the basic continuous review​ model?
VladimirAG [237]

Answer:

D. The order quantity is​ constant, regardless of the demand.

Explanation:

Basic Continuous Review Model relates to inventory stock management, where each time an inventory unit is added in or moved out the stock level is calculated again.

It do not assume that the order quantity is constant as it calculates inventory level after each order, there is no basic assumption as such.

The review model keeps on moving the stock and tries to maintain such level as by ordering the quantity sold, and it keeps on rotating, but there is no standard set for order quantity.

6 0
3 years ago
The customer service department at JNC, Inc. has been receiving phone calls from customers for whom there is no record. This is
kozerog [31]

Answer:

The correct answer is (C)

Explanation:

Recording sales is one of the essential processes to make sure the transparency within the company. It helps to cross-check sales whenever a company wants to. Overall, in the above scenario,  the customer service department has received calls from the customers but there is no record which shows that there are unrecorded sales which itself is a big red flag.

8 0
3 years ago
Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are
Pachacha [2.7K]

Answer:

1.) Lilies and Daisies received the largest portion of the joint costs.

2.) Daisies received the largest portion of the joint costs.

3.) a. The cost of watering the plants is a large portion of the joint costs and the company follows the same irrigation system for all three varieties of flowers.

Explanation:

Physical unit method :

Joint product _Flo /harvest _prop__JC__Alloc

Tullip ________10 _______0.20 _ 30 __ 6

Lilly _________ 20 ______0.40 _ 30 __ 12

Daisy ________ 20 ______0.40 _ 30 __ 12

Allocation = proportion * joint cost

B.)

Weighted average method :

If daisy requires 3 tines as much as lilies and tulips requires something in between both ;

Then ;

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Weighted average method :

JP_Flo /H_ WF__WFW_W%__pro__JC__Alloc

Tullip_10 __ 2 __ 20 _ 20% _0.20 _ 30 __ 6

Lilly_ 20 ___ 1 __ 20 _ 20% _0.20 _ 30 __ 6

Daisy_20 __ 3__ 60 _ 60% _0.60 _ 30 __ 18

Allocation = joint cost * proportion

6 0
3 years ago
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