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
mart [117]
3 years ago
8

An investor has $20,000 in his trading account and he borrows an additional $20,000 from his broker. He invests the total amount

in a stock at $30 per share. Assume the maintenance margin is 40%, at what price will the investor first receive a margin call
Business
1 answer:
LenKa [72]3 years ago
8 0

Answer: $25

Explanation:

Margin call = Initial price * (1 - initial margin) / ( 1 - maintenance margin)

Initial margin = Personal amount invested / Total amount invested

= 20,000 / (20,000 + 20,000)

= 0.5

Margin call = 30 * (1 - 0.5) / ( 1 - 0.4)

= 30 * 0.8333

= $25

You might be interested in
Cheryl purchased 5 identical hollow pine doors and 6 identical solid oak doors for the house she is building. The regular price
almond37 [142]

Answer:

The answer to this question is option C. $560

Explanation:

We can let the price of each hollow pine door = d and of each solid oak door = 2d.

Since each pine door = 40, d = 40, and the regular price of each solid oak door is (2)(4) = 80.

With a 25% discount, each solid oak door is 0.75(80) = 60.

So, the six oak doors cost 6 x 60 = 360 dollars, and the five pine doors cost 5 x 40 = 200 dollars. Thus, the total is 560 dollars.

Hence the answer is C

6 0
3 years ago
Read 2 more answers
Find the effective interest rate per payment period for an interest rate of 9% compounded monthly for each of the given payment
Temka [501]

Answer:

a. 0.75% per month

b. 2.25% per quarter

c. 4.5% semi- annually

d. 9% yearly

Explanation:

a. Computing the effective interest rate per payment period for the payment schedule which is monthly:

Effective rate (monthly) = Nominal rate (r) / Compounded monthly (m)

where

r is 9%

m is 12

Putting the values above:

= 9% / 12

= 0.75% per month

b. Computing the effective interest rate per payment period for the payment schedule which is quarterly:

Effective rate (quarterly) = Nominal rate (r) / Compounded quarterly (m)

where

r is 9%

m is 4

Putting the values above:

= 9% / 4

= 2.25% per quarter

c. Computing the effective interest rate per payment period for the payment schedule which is semi- annually:

Effective rate (semi- annually) = Nominal rate (r) / Compounded quarterly (m)

where

r is 9%

m is 2 (every 6 months)

Putting the values above:

= 9% / 2

= 4.5% semi- annually

d. Computing the effective interest rate per payment period for the payment schedule which is annually:

Effective rate (annually) = Nominal rate (r) / Compounded yearly (m)

where

r is 9%

m is 1 (end of the year)

Putting the values above:

= 9% / 1

= 9% yearly

3 0
3 years ago
The actual and standardized budgets will be equal when: 
A. The rate of inflation is zero
B. The economy is at full employment
C
alexira [117]

Answer:

The correct answer to the following question is B) the economy is at full employment.

Explanation:

Standardized budget which is also know as full employment budget , is used to measure the federal budget deficit or surplus , with the given tax rates and government spending. Here the assumption made is that the economy has full employment, and this is one of the major difference between standardized and actual budget . Also standardized budget would reflect any type of adjustment that has to be made in the actual budget. So therefore the only way that actual budget and standardized budget are equal is when they both have full employment present in the economy.

8 0
3 years ago
5 points
swat32

Answer:

R

Explanation:

7 0
2 years ago
Why are job referrals valuable to both job seekers and employers?​
Leto [7]
A successful referral makes an employee feel better about the company they work for
5 0
3 years ago
Other questions:
  • Whats the tax used on airline tickets and gasoline?
    10·1 answer
  • Nlg gers number yes 34 to yes
    13·1 answer
  • 21. Preferred stock pays quarterly dividend of $3 a share. If investors require 12% return on a stock of a similar risk level, w
    7·1 answer
  • Corona Company is owned equally by Maria, her sister Carlita, her mother Gabriella, and her grandmother Olivia, each of whom hol
    8·1 answer
  • Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
    8·1 answer
  • Skysong Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at
    6·1 answer
  • Working with people sometimes requires special techniques – what are some for graphic designer job?
    11·1 answer
  • Granfield Company has a piece of manufacturing equipment with a book value of $44,500 and a remaining useful life of four years.
    15·1 answer
  • Which group is legally responsible for implementing
    6·2 answers
  • Question 7 of 10
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!