Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume yoU sell short 100 shares of common stock at BDT $45per share, with initial margin at 0.55. The stock paid dividends during the period

Assume yoU sell short 100 shares of common stock at BDT $45per share, with initial margin at 0.55. The stock paid dividends during the period of $3, and you did not remove any money from the account before making the offsetting transaction. The interest is 7% if price at time of covering your position reached30, maintenance margin is 0.35 percent. calculate 1-what is your account value 2-what is youe equity 3-what is your equity after price changes 4-what is your actual margin 5- at what price the broker will give you a margin call 6-what is your return

pls solve it as soon as possible

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

Risk Management And Financial Institution

Authors: John C. Hull

2nd Edition

0136102956, 9780136102953

More Books

Students also viewed these Finance questions

Question

2 Question 2 of 2

Answered: 1 week ago