Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a LONG/SHORT portfolio with the following features. - A portion of the account's total equity used for the LONG side, with the remainder for

image text in transcribed Consider a LONG/SHORT portfolio with the following features. - A portion of the account's total equity used for the LONG side, with the remainder for the SHORT side - No excess cash - 50% margin requirement on both sides, full margin use - No commissions, interest, or borrow fee 1. Suppose total account equity before putting the LONG/SHORT trades is $168,250, and 41.2% of it is used for the LONG side. What is the value of the account's total assets immediately after completing your LONG/SHORT trades using the information above? A. $336,000 B. $392,000 C. $436,000 D. $469,000 2. Suppose total account equity before putting the LONG/SHORT trades is $262,800, and 51.6% of it is used for the LONG side. What is the value of the account's total liabilitie immediately after completing your LONG/SHORT trades using the information above? A. $451,000 B. $390,000 C. $333,000 D. $262,000 Consider a LONG/SHORT portfolio with the following features. - A portion of the account's total equity used for the LONG side, with the remainder for the SHORT side - No excess cash - 50% margin requirement on both sides, full margin use - No commissions, interest, or borrow fee 1. Suppose total account equity before putting the LONG/SHORT trades is $168,250, and 41.2% of it is used for the LONG side. What is the value of the account's total assets immediately after completing your LONG/SHORT trades using the information above? A. $336,000 B. $392,000 C. $436,000 D. $469,000 2. Suppose total account equity before putting the LONG/SHORT trades is $262,800, and 51.6% of it is used for the LONG side. What is the value of the account's total liabilitie immediately after completing your LONG/SHORT trades using the information above? A. $451,000 B. $390,000 C. $333,000 D. $262,000

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

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

Recommended Textbook for

Growth Linked Securities

Authors: John Williamson

1st Edition

3319683322,3319683330

More Books

Students also viewed these Finance questions

Question

=+11. Nonverbal Communication: Analyzing Nonverbal Signals [LO-5]

Answered: 1 week ago

Question

' Which areas are you most dependent on to get your work done?

Answered: 1 week ago