FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor opens a margin account with an initial deposit of $6400. He then purchases 700 shares of a stock at $40. His margin account

image text in transcribed

An investor opens a margin account with an initial deposit of $6400. He then purchases 700 shares of a stock at $40. His margin account has a maintenance margin requirement of 30%. Ignoring commissions and interest, IF the price changed to 31 WHAT IS YOUR NEW EQUITY AT WHAT PRICE YOU WILL GET A MARGIN CALL PRICE

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

Fundamentals Of Healthcare Finance

Fundamentals Of Healthcare Finance

Authors: Paula H. Song, Kristin L. Reiter

4th Edition

1640553223, 978-1640553224

More Books

Students also viewed these Finance questions

Question

★★★★★
Marjorie works for a large firm whose business is to find suitable real estate, establish a limited partnership to purchase the property, and then sell the limited partnership interests. In the...

Answered: 1 week ago

Question

★★★★★
1) What will the code display ? mystring = 'abcdefg' print(mystring[3:]) 2) What will the following code display? numbers = [1,2,3,4,4] my_list = number[:1] print(my_list) 3) How do you find the...

Answered: 1 week ago

Question

★★★★★
2 Can the core business based around Ibadan University be expanded in a serious way? What would limit its prospects?

Answered: 1 week ago

Question

★★★★★
Construct the AD, SRAS, and LRAS curves for an economy experiencing: (a) Full employment, -figure A (b) An economic boom,-figure B (c) A recession- figure C

Answered: 1 week ago

Question

★★★★★
An investor opens a margin account with an initial deposit of $6400. He then purchases 700 shares of a stock at $40. His margin account has a maintenance margin requirement of 30%. Ignoring...

Answered: 1 week ago

Question

★★★★★
Question 1 (7 points) Ronald is an Economics students who likes to spend his leisure time of sixty hours a month doing one of two activities: watching movies at Dendy Cinemas Newtown (I), and...

Answered: 1 week ago

Question

★★★★★
In 2006, your company purchased a front-end loader for $150,000, a dumptruck for $85,000, and a dumping trailer (pup) for the dump truck for$38,000. In 2007, your company purchased two side-dump...

Answered: 1 week ago

Question

★★★★★
MONARCH INSTITUTE The partners have all replied to your email approving the financial report. They have also asked to complete additional analysis of the financial data. The business would like to...

Answered: 1 week ago

Question

★★★★★
A survey was completed among patients after discharging from an emergency room in a certain month. The following questions were asked after reflecting on the ER visit: Variable Question Wait Time...

Answered: 1 week ago

Question

★★★★★
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $3,080,000. You have been provided...

Answered: 1 week ago

Question

★★★★★
A company's balance sheet shows $100,000 in prepaid rent. Half of that amount is for the following year. What is the first journal entry that should be made? Select an answer: Credit Assets by...

Answered: 1 week ago

Previous Question Next Question