Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AT&T LTE 7:13 PM 76% a canvas.csun.edu USE THE FOLLOWING INFORMATION FOR THE NEXT THREE PROBLEMS Jack has a margin account and deposits $25,000. If

image text in transcribed
AT&T LTE 7:13 PM 76% a canvas.csun.edu USE THE FOLLOWING INFORMATION FOR THE NEXT THREE PROBLEMS Jack has a margin account and deposits $25,000. If the margin requirement is 40 percent, commissions are ignored, and Irish Industries is currently selling at $45 per share: 5. What is the value of the stock that Jack has acquired? A) S41,667 B) $62,500 C) $75,000 D) $87,500 6. What is Jack's profit if the price of Irish Industries rises to S55? A) S5,555 B) S9.259 C) $13,895 D) $23,598 7. If the maintenance margin is 20 percent, to what price can Irish Industries fall bef Jack receives a margin call? A) $21.75 B) $23.75 C) S33.75 D) S35.75 8. At the beginning of the year a U.K. investor purchased shares of a U.S. company per share. At this time the exchange rate was 0.69 per dollar. At the end of the y investor sold the shares at $22 per share, and the exchange rate is 0.85 per dollar is the home country (U.K.) HPR? A) 8.41% B) -12% C) 23.19% D) 13.64% 9. Find the annualized returns for investments A and B: us

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

Students also viewed these Finance questions