Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) An investor buys 1000 shares of QQ Mart Berhad at RM4.5 per share on margin with an initial margin of 70 percent and a

image text in transcribed

(a) An investor buys 1000 shares of QQ Mart Berhad at RM4.5 per share on margin with an initial margin of 70 percent and a maintenance margin of 25% percent. In three months, the stock goes to RM5.85. Compute the price when a margin call occurs. Commission and other costs ignored. (5 marks) are (b) Amanda Lai purchased 1500 shares of Smart Berhad at RM10 per share. Currently the stock is selling at RM12. If she wants to be assured of a profit of at least RM4050, what type of order should he place and at what price per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started