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
Vinil7 [7]
3 years ago
10

You are bullish on Stock A. The current market price is $67 per share, and you wish to purchase 200 shares. Your plan is to borr

ow at the maximum possible amount allowed under the initial margin requirement of 50%. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 26%?
Business
1 answer:
Vikentia [17]3 years ago
7 0

Answer:

The Margin call will be made at $50.92

Explanation:

Initial Margin per share = Price*Margin requirement

Initial Margin per share = $67*50%

Initial Margin per share = $33.50

Maintenance Margin per share = $67 * 26% = $17.42

Hence, the loss allowed = Initial Margin per share - Maintenance Margin per share =  $33.50 - $17.42 = $16.08

Hence, the price of a share can fall up to $50.92 (i.e. $67-$16.08) before getting a margin call. Thus, the Margin call will be made at $50.92

You might be interested in
You can invest $100,000 into either project A or B. You estimate that A would succeed with a probability of 0.6 in which case it
yan [13]

Answer:

a. ​Project A

Explanation:

The computation of the expected return is shown below:

For Project A

= (0.6 × $200,000 + 0.4 × $50,000)

= $120,000 + $20,000

= $140,000

For Project B

= (0.7 × $150,000 + 0.3 × $30,000)

= ($105,000 + $9,000)

= $114,000

Since in the Project A, the value doubles means = $100,000 × 2

And, if the succeeding percentage is 0.6 then its failing percentage is 0.4

So as we that the project A has an high expected return than the Project B so the Project A should be invested

4 0
3 years ago
If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using
djyliett [7]
<span>If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using</span> competition-based pricing.
In this we considers costs have not much value and consider to be less important than competitor's prices, means competitor's price is important.
4 0
3 years ago
Abigail has an inheritance tax lien placed on all of her property. What kind of a lien is it?
Iteru [2.4K]

Answer:

A general lien is one placed against any and all real and personal property owned by a particular debtor. An example is an inheritance tax lien placed against all property owned by the heir. A specific lien attaches to a single item of real or personal property, and does not affect other property owned by the debtor.

Explanation:

4 0
3 years ago
Suppose Megan gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She chooses to spend $3
kicyunya [14]

Answer:

0.75, 0.25

Explanation:

With an increase in disposable income marginal propensity to consume increase. Similarly, with an increase in disposable income marginal propensity to save increases. Marginal propensity to save is the amount of money saved or kept after a fraction increase in overall disposable income.

MPC = 300/400=0.75

MPS = 100/400=0.25

Marginal propensity to consume is 0.75

Marginal propensity to save is 0.25

5 0
3 years ago
In a mixed market economy, what is a typical way the government can reduce unemployment? The government can pay for projects to
Aleonysh [2.5K]

Answer

In a mixed market economy, the typical way the government can reduce unemployment is : The government can pay for projects to create work

Explanation

In a mixed market economy, part of the economy is left to the free market and part of it is managed by the government. In a mixed economy, private enterprise run most businesses and the government later intervene in areas like provision of public services( education, health care and waste control), and in the regulation (legal right to private property). Most modern economies are mixed where the means of production are shared between the private and public sectors.


8 0
3 years ago
Read 2 more answers
Other questions:
  • __________ implements a security policy that specifies who or what may have access to each specific system resource and the type
    15·1 answer
  • A project background and timetables are typical bid proposal elements. True or false?
    9·2 answers
  • What else besides raw materials would be included in input costs?
    11·1 answer
  • In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs
    10·1 answer
  • Mistakes in contracts may be classified as __________. void and voidable enforceable and voidable unilateral and void mutual and
    13·1 answer
  • If the house you are looking at currently costs ​$160 comma 000 and is expected to increase in value each year at a rate of 3 ​p
    12·1 answer
  • Last week at a​ festival, a man sold 5 times as many​ tie-dyed T-shirts as​ silk-screened shirts. He sold 234 shirts altogether.
    10·1 answer
  • If a consumer buys flour because he loves baking, the flour is counted as part of GDP. If a bakery buys flour as an input to bak
    9·1 answer
  • In the first quarter of operation, the Blending Department of ChemUSA produced 50,000 barrels of Compound X and left 20,000 barr
    15·1 answer
  • what are the typical interest rates for a traditional savings account, online savings account, certificate of deposit, and money
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!