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solmaris [256]
3 years ago
13

You short sold 1,100 shares of stock at a price of $29 and an initial margin of 55 percent. If the maintenance margin is 40 perc

ent, at what share price will you receive a margin call? What is your account equity at this stock price?
Business
1 answer:
Margaret [11]3 years ago
6 0

Answer:

No of stock = 1100

Price of Stock = 29

Short sale = 31900

Initial Margin % = 55%

Initial Margin = 17545

Total value = 49445

The earnings of the sale is 31900, which is deposited in our account for a total account value of $49,445 (31900+55%)

Maintenance Margin = 40%

Margin Call Value = 49445/ (1+0.4)

Margin Call Value = 35317.86

Price per share = 35317.86 / 1100  

Price per share = 32.11

So a margin call will be triggered when the price of the shorted security rises to $32.11

Margin Call Price = 32.11

Account Equity = 32.11*1100

Account Equity = 35318

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When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I invest half of it in gold, the va
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Explanation:

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For Certificates of Deposits.

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5 0
3 years ago
Concord Corporation had 807000 shares of common stock outstanding at December 31, 2021. In addition, it had 150000 stock options
Radda [10]

Answer:

846,000 shares

Explanation:

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7 0
3 years ago
List four people you know who would be good references to include on a job application. What is their relationship to you? Expla
kobusy [5.1K]

Answer:

Explanation:

Someone you have worked with previously (a coworker). They would be able to speak for how well you work with other people, how you contribute to the environment etc.

Boss from previous job. They can testify to the quality, quantity, regularity and consistency of work + how responsible and dependant you are.

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nignag [31]

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