Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 11, 2024

4. You are bearish on Google stock and decide to sell short 20 shares at the current market price of $1500 per share. (a) How

4. You are bearish on Google stock and decide to sell short 20 shares at the current market price of $1500 per share.

(a) How much cash must you put into your brokerage account if the brokers initial margin requirement is 50% of the value of the short position?

(b) How high can the stock price rise before you get a margin call if the maintenance margin is 20%?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Finance questions

Question

★★★★★

The manager of the commercial loan department for a bank wants to develop a rule to use in determining whether or not to approve various requests for loans. The manager believes that three key...

Answered: 1 week ago

Question

★★★★★

Describe the following approaches to evaluation: the CIPP (context, input, process, product) model, responsive evaluation, theory-based evaluation, impact evaluation, participatory evaluation,...

Answered: 1 week ago

Question

★★★★★

Southeastern College began the year with endowment investments of $1,200,000 and $700,000 of restricted cash designated by a donor for capital additions. 1. During the year an additional $500,000...

Answered: 1 week ago

Question

★★★★★

The Equal Pay Act of 1963 seeks to do which of the following? 01. 02. Eliminate the wage gap between women and men Eliminate the wage gap between upper and middle classes 03. Eliminate the wage gap...

Answered: 1 week ago

Question

★★★★★

Integers firstVal and secondVal are read from input. For each number from firstVal to secondVal both inclusive, output the number's value of plus sign characters ( ' + ' ) on a new line.

Answered: 1 week ago

Question

★★★★★

The Covid-19 pandemic has forced many countries to partially shutdown their economies to prevent the spread of the virus. In response, many governments including Barbados have embarked on...

Answered: 1 week ago

Question

★★★★★

Total cash available $64.000 Less cash disbursements For inventory $47,850 For expenses 13,300 For equipment 1,500 Total cash disbursements 62,650 Excess (deficiency) of cash $1,350 Financing: Etc....

Answered: 1 week ago

Question

★★★★★

Review the annual reports of PepsiCo and Amazon, two of the largest publicly traded firms in America. Compute and compare the accounts receivable turnover ratios and the average collection period in...

Answered: 1 week ago

Question

★★★★★

a) Explain how changes in the film industry led to blockbuster movies becoming more limited creatively and oriented to making money [worth 5 marks] b) Then explain how changes in industry practices...

Answered: 1 week ago

Question

★★★★★

Nike not renewing franchise agreements in Russia Reporting by Reuters; Editing by Simon Cameron-Moore and Tomasz Janowski 25 May 2022, Reuters U.S. sportswear maker Nike has not renewed agreements...

Answered: 1 week ago

Previous Question Next Question