Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 12, 2024

1. An investor sells short 100 shares of XYZ stock. The current price of XYZ stock is $55 per share. The initial margin requirement is

1. An investor sells short 100 shares of XYZ stock. The current price of XYZ stock is $55 per share. The initial margin requirement is 60% and the maintenance margin requirement is 30%.

A) What is the total amount of assets (in dollars) in the investors account immediately after she sells short?

B) Suppose that the stock price increases to $75 per share. What is the margin (as a percent) in the account after the price increase?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money Into Wealth

Authors: Arthur J Keown

5th Edition

0136070620, 9780136070627

More Books

Students also viewed these Finance questions

Question

★★★★★

In a dairy operation, milk at a flow rate of 250 liter/hour and a cow-body temperature of 38.6C must be chilled to a safe-to-store temperature of 13C or less. Ground water at 10C is available at a...

Answered: 1 week ago

Question

★★★★★

4. Briefly describe two EEO laws and the concept of EEO. Which groups are protected by EEO laws in the United States? What are they protected against?

Answered: 1 week ago

Question

★★★★★

2.80 Breathing Patterns Research psychologists are interested in finding out whether a person's breathing patterns are affected by a particular experimental treatment. To determine the general...

Answered: 1 week ago

Question

★★★★★

The accountant for Mystic Medical Co., a medical services consulting firm, mistakenly omitted adjusting entries for(a) Unearned revenue earned during the year ($21,950) and(b) Accrued wages ($6,100)....

Answered: 1 week ago

Question

★★★★★

What is the primary purpose of access control in information security? Group of answer choices To specify who may use a particular resource and how To monitor network traffic To prevent data loss To...

Answered: 1 week ago

Question

★★★★★

____________ is not among the factors of production in Porter's model of international competitive advantage.Blank is not among the factors of production in Porter's model of international...

Answered: 1 week ago

Question

★★★★★

Suppose that L is a location function of an object, given as L(t) instantaneous velocity of the object at t First we compute and simplify L(5+ h). L(5+ h) = = 2t 1. We will compute the 5 as follows....

Answered: 1 week ago

Question

★★★★★

Use the following account balances from the adjusted trial balance of Flora Wholesalers: Account Debit Balance Credit Balance Cash $ 4,200 Accounts receivable $ 300 Accounts payable $ 1,100 H. Jones,...

Answered: 1 week ago

Question

★★★★★

A physician hopes to advocate for a new medical records system that he believes will save his department money. He has a good idea of the money that can be saved each year, and has received several...

Answered: 1 week ago

Question

★★★★★

Provide a Situation Analysis: Review the current situation facing Suez Canal and develop in detail the PESTLE Analysis looking at the Strengths, Weaknesses, Opportunity, and Threats (SWOT) analysis,...

Answered: 1 week ago

Question

★★★★★

5.29 The fighter aircraft F/A-18 (Hornet) has a takeoff mass of 25,400 kg, a wing area of 37.16 m, and two turbofan engines that each produces 71.2 kN of thrust. If AR = 3.5, e = 0.85, CD, = 0.02 a....

Answered: 1 week ago

Question

★★★★★

1. Specifically what type of appraisal tool does the company seem to be using, based on what you read in this chapter? How would you modify it?

Answered: 1 week ago

Question

★★★★★

3. Why does Kim Galvin think that, besides the human resources director, only an employee and his or her manager should review the employees performance review? What (if any) is the drawback of not...

Answered: 1 week ago

Question

★★★★★

4. Suppose, as Kim Galvin says, you have an employee who is very well liked but not meeting the job expectations. What would you do?

Answered: 1 week ago

Previous Question Next Question