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Lorico [155]
3 years ago
9

You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. You are required to post a 50% margin on

the short sale. If your broker requires a 30% maintenance margin, at what price will you get a margin call? (Ignore interests and dividends)
a. $62.50
b. 57.69
c. 56.25
d. 37.50
Business
1 answer:
Paraphin [41]3 years ago
7 0

Answer:

b. 57.69

Explanation:

Calculation for what price that you will get a margin call

First step

200 shares *$25 per share=$10,000

Second step

Based on the information given we are required to post a 50% margin on the short sale.

Now let find the 50% margin

50% margin =50%*$10,000

50% margin=$5,000

Hence,

$10,000+$5,000=$15,000

Third step

Based on the information given we were told that the broker requires a 30% maintenance margin.

.30=($10,000-200p)/200p

60p=$15,000-200p

260p= $15,000

Hence

$15,000/260

Price= $57.69

Therefore the price that you will get a margin call will be $57.69

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The average gross income for domestic movies (in mln) is 180

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Today, weekly box office revenues are usually considered Friday-Thursday, reflecting the fact that most movies are officially released on Friday in the United States. Variety was published every Wednesday for many years, so most of the weekly box office revenue they reported in the 1920s-1990s was from Thursday-Wednesday.

Most of the Weekly Loss is weekend cashiers. Historically, this has been reported as box office revenue from Friday to Sunday, and holidays close to weekends. Day numbers from Friday to Sunday are also now used.

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xxTIMURxx [149]
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3 years ago
Read 2 more answers
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Naddik [55]

Answer:

a) ME= 1.93

b) confidence interval= (19.59,23.45)

Explanation:

a) Sample of customers is 64, population standard deviation is 6 and confidence level is 99%

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Sample size= 64

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Population standard deviation= 6

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Margin of error at 99% confidence interval is 1.93 from the output.

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Interval upper limit= 19.59

Interval lower limit= 23.45

99% confidence interval is (19.59, 23.45) from the output.

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Answer:

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Explanation:

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7 0
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