Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 pts Q11-Q15 are based on the following paragraphy You sell short 200 shares of Doggle Treats Inc. al $25 per. The initial margin is

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1 pts Q11-Q15 are based on the following paragraphy You sell short 200 shares of Doggle Treats Inc. al $25 per. The initial margin is 50% and the maintenance margin is 30% 11) You must deposit cash in the account in the beginning. $5,000 $1,500 O $3.500 O $2,500 Question 12 1 pts What is the asset value in your account after you sell the stocks on the market in the beginning? $5,000 O $3,500 O $2,500 $7.500 Question 13 1 pts Assume you earn no interest on the funds in your margin account, and the firm does not pay any dividends. At what stock price will you get a margin call? $32.25 O $35.71 O $28.85 O $31.50 Question 14 1 pts Assume you earn no interest on the funds in your margin account, and the firm pays a dividend of $1. What is your total profit/loss (P/L) from this short selling if you cover the position at $27 per share? -$600 O -$400 O -$200 $400 Question 15 1 pts Continue with the previous question. What is your return 0 -24% 896 0 -16%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

HBR Guide To Finance Basics For Managers

Authors: Harvard Business Review

1st Edition

1422187306, 978-1422187302

More Books

Students also viewed these Finance questions

Question

b. Where did they come from?

Answered: 1 week ago

Question

c. What were the reasons for their move? Did they come voluntarily?

Answered: 1 week ago

Question

5. How do economic situations affect intergroup relations?

Answered: 1 week ago