Case 5 100,000 Case 2 15,000 30 500 40% Case 3 5,000 50 100 60% Case 4 150,000 50 3,000 60% 80 1,250 55% Margin Problems Cash Account Balance Initial Price Shares purchased w/ Cash Account Initial Margin Requirement Shares purchased w/ Margin Account Margin Assets Maintenance Margin Margin loan Margin Call Price Call Money Rate Case 1 20,000 20 1,000 50% 2,000 40,000 30% 20,000 14.29 4.00% 30% 30% 30% 30% 4.00% 4.00% 4.00% 4.00% 25 75 Updated Price #1 One year later New Price Updated Market Value of Shares in Margin Acct minus margin interest HPR Stock New Equity (net of interest) HPR Margin Account New Margin % 49,200 25.00% 28,400 42.00% 57.72% 15 27 48 44 7 2 Updated Price #2 One year later New Price Updated Market Value of Shares in Margin Acct minus margin interest HPR Stock New Equity (net of interest) HPR Margin Account New Margin % 29,200 -25.00% 9,200 -54.00% 31.51% Case 2 15,000 90.00 60% Case 3 25,000 100.00 55% Case 4 30,000 120.00 55% $ Case 5 50,000 120.00 60% $ $ Selling Short Problems Cash Account Balance (Equity) Initial Price Margin Requirement Max Shares sold Initial Margin Requirement Borrowed Share Value Total Assets $ Case 1 10,000 75.00 60% 222 9,990 16,650 26,650 100.00 $ 110.00 $ 90.00 $ 140.00 Updated Price Value of Shares Sold Equity Update Margin % HPR Stock HPE Equity 60.00 $ 13,320 13,330 100.08% -20.00% 33.43% Case 5 100,000 Case 2 15,000 30 500 40% Case 3 5,000 50 100 60% Case 4 150,000 50 3,000 60% 80 1,250 55% Margin Problems Cash Account Balance Initial Price Shares purchased w/ Cash Account Initial Margin Requirement Shares purchased w/ Margin Account Margin Assets Maintenance Margin Margin loan Margin Call Price Call Money Rate Case 1 20,000 20 1,000 50% 2,000 40,000 30% 20,000 14.29 4.00% 30% 30% 30% 30% 4.00% 4.00% 4.00% 4.00% 25 75 Updated Price #1 One year later New Price Updated Market Value of Shares in Margin Acct minus margin interest HPR Stock New Equity (net of interest) HPR Margin Account New Margin % 49,200 25.00% 28,400 42.00% 57.72% 15 27 48 44 7 2 Updated Price #2 One year later New Price Updated Market Value of Shares in Margin Acct minus margin interest HPR Stock New Equity (net of interest) HPR Margin Account New Margin % 29,200 -25.00% 9,200 -54.00% 31.51% Case 2 15,000 90.00 60% Case 3 25,000 100.00 55% Case 4 30,000 120.00 55% $ Case 5 50,000 120.00 60% $ $ Selling Short Problems Cash Account Balance (Equity) Initial Price Margin Requirement Max Shares sold Initial Margin Requirement Borrowed Share Value Total Assets $ Case 1 10,000 75.00 60% 222 9,990 16,650 26,650 100.00 $ 110.00 $ 90.00 $ 140.00 Updated Price Value of Shares Sold Equity Update Margin % HPR Stock HPE Equity 60.00 $ 13,320 13,330 100.08% -20.00% 33.43%
