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2 years ago

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An investor buys 100 shares of walmart at $45 per share on margin with an initial margin of 70% and a maintenance margin of 25%.

in two months, the stock goes to $56. what is the actual margin when the stock price is $56?

1 answer:

lana [24]2 years ago

6 0

6250 + 56 = 6250 price

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An investment firm or fund is a partnership, trust or corporation that “pools” money from shareholders and invests it in the appropriate security instruments and multiply investment money.

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An author just signed a lucrative contract with a publisher that offers to pay her the amount of $500 at the end of year 9 when

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Answer:

Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.

Explanation:

Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.

$PresentValue=\frac{FutureValue}{(1+r)^{n} }$

Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.

$PresentValue=\frac{500}{(1+0.07)^{9} } =271.97$

Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.

$Present Value=\frac{A((1+r)^{n}-1 )}{r(1+r)^{n} }$

And we solve for "A" like this

$171.97=\frac{A((1+0.07)^{9}-1 )}{0.07(1+0.07)^{9} }$

$171.97=\frac{A(0.838459212 )}{0.128692145}$

$171.97=A(6.515232249)$

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Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.

Best of luck.

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Answer:

The remaining part of the question is:

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D. I, II, III

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C. II and III only

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<em>Treasury Bonds and Agency Bonds are issued at par or in most cases at a very slight discount to par, and make periodic interest payments.</em>

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