1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Q 6.3: Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approxima
lbvjy [14]

Answer:

D : 2.17%.

Explanation:

The 26% is an APR(Annual Percentage Rate). This is a quoted rate that  a credit card company charges . It is also known as the  nominal rate.

Since the question is asking for a monthly rate, use the 26% and convert it into monthly rate. We have 12 months in a year; meaning, we will divide the nominal rate by 12;

Monthly rate = APR / n

APR = 26% or 0.26 as a decimal

n = compounding periods = 12

therefore, Monthly rate = 26% /12 = 2.17%

5 0
3 years ago
Using the information below, calculate gross profit for the period:    Beginning Raw Materials Inventory$25,000 Ending Raw Mater
nevsk [136]

Answer:

Gross Profit                  714,000

Explanation:

Gross Proft: is the diference between the sales revenue and the cost of the goods sold.

Sales revenue          1,254,000

Cost of Goods Sold    (540,000)

Gross Profit                  714,000

note: All the other account and values are irrelevant to determinate the gross profit.

<u>Other way to calculate gross profit:</u>

(sale price per unit - cost per unit) x unit sold

5 0
3 years ago
What is the effect on the labor market of counting marginally attached workers as​ unemployed? If we count marginally attached w
Setler79 [48]

Answer:

C. the labor force participation rate falls

Explanation:

Marginally attached workers are not part of labor force, but if they are included and are unemployed then the labor which is actually participating will fall.

As in the labor participation rate = Working labor or simply employed labor divided by total labor force.

Thus, in this case with marginally attached labor, only denominator will increase in the equation.

Therefore, this will state that the labor force participation will fall as marginally attached is considered as unemployed.

8 0
3 years ago
A lumber mill bought a shipment of logs for $58,000. When cut, the logs produced a million board feet of lumber in the following
Leokris [45]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
3 years ago
What is the best advice for you to follow when writing a persuasive claim message?
svet-max [94.6K]
It must be debatable. Hope this helps
3 0
3 years ago
Other questions:
  • There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the p
    8·1 answer
  • Which of the following is an assumption of a special order decision? Group of answer choices The special order sales will not af
    8·1 answer
  • A car rental cost $90.00 last year. This year it cost $102.99. What is the inflation rate, to the nearest tenth percent?
    6·1 answer
  • b. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, TC increases by $5,000 (so
    10·1 answer
  • Beginning inventory Merchandise $302,000 Finished goods $604,000 Cost of purchases 420,000 Cost of goods manufactured 760,000 En
    14·1 answer
  • The following are budgeted data: January February March Sales in units 16,000 22,000 19,000 Production in units 19,000 20,000 18
    9·1 answer
  • 16. A type of card that allows the card holder to spend a certain amount of money without ever having to pay it back?
    11·1 answer
  • The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
    5·1 answer
  • How you will differentiate the company from
    5·1 answer
  • The process of figuring out how much an amount that you expect to receive in the future is worth today is called:.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!