HELP is there someone who could tell me how to calculate the total cost from this table information.
This is the question.
Assume that Tesla (TSLA) is currently trading at $1250 per share. | | | | | | | | |
Suppose | | | | | | | | | | | | | |
- we want to buy 300 shares on margin | | | | | | | | | |
- require that margin required for purchase is 50% (i.e. to buy 1 share of TSLA, you would need to put up $625 of your cash and borrow the rest) |
- borrowing rate is 2% | | | | | | | | | | | |
- investment rate on depost is 1% | | | | | | | | | | |
Day Trade Price 1 $ 1.250,00 Formula Bar $ $ -> top up to 187500 -> top up to 187500 0 A A $ 3 4 5 6 7 8 A A $ -> top up to 187500 -> top up to 187500 Settlement Price Daily gain/loss ($) Cum gain/loss ($) Margin acct balance ($) Margin call ($) Amt Borrowed Interest Paid Interest Received Final Margin $ 187.500,00 $ 187.500,00 1.241,00 $ (2.700,00) $ (2.700,00)| $ 184.800,00 $ 2.705,21 $ 187.500,00 $ 10,27 $ 5,06 $ 184.794,79 1.238,30 $ (810,00) $ (3.510,00) $ 186.690,00 $ 815,01 $ 184.800,00 $ 10,13 $ 5,11$ 186.684,99 1.244,60 $ 1.890,00 $ (1.620,00) $ 189.390,00 $ $ 183.990,00 $ 10,08$ 5,19 $ 189.385,11 1.241,30 $ (990,00) $ (2.610,00) $ 188.395,11 $ $ 183.994,89 $ 10,08$ 5,16 $ 188.390,19 1.240,10 $ (360,00) $ (2.970,00) $ 188.030,19 $ $ 183.999,81 $ 10,08 $ 5,15 $ 188.025,26 1.236,20 $ (1.170,00) $ (4.140,00) $ 186.855,26 $ 649,71 $ 184.004,74 $ 10,08$ 5,12 $ 186.850,29 1.229,90 $ (1.890,00) $ (6.030,00) $ 185.610,00 $ 1.894,96 $ 183.360,00 $ 10,05 $ 5,09 | $ 185.605,04 1.230,80 $ 270,00 $ (5.760,00)| $ 187.770,00 $ $ 181.470,00 $ 9,94 $ 5,14 $ 187.765,20 1.225,40 $ (1.620,00) $ (7.380,00 $ 186.145,20 $ 1.359,64 $ 181.474,80 $ 9,94 $ 5,10 $ 186.140,36 1.228,10 $ 810,00 $ (6.570,00) $ 188.310,00 $ $ 180.120,00$ 9,87 $ 5,16 $ 188.305,29 1.211,00 $ (5.130,00) $ (11.700,00) $ 183.175,29 $ 4.329,56 $ 180.124,71 $ $ 5,02 $ 183.170,44 1.211,00 $ $ (11.700,00) $ 187.500,00 $ $ 175.800,00 $ 9,63 $ 5,14 $187.495,50 1.214,30 $ 990,00 (10.710,00) $ 188.485,50 $ $ 175.804,50 $ 9,63 $ 5,16 $ 188.481,03 1.216,10 $ 540,00 (10.170,00) $ 189.021,03 $ $ 175.808,97 $ 9,63 $ 5,18 $ 189.016,58 1.223,00 $ 2.070,00 $ (8.100,00) $ 191.086,58 $ $ 175.813,42 $ 9,63 $ 5,24 | $ 191.082,18 1.226,90 $ 1.170,00 $ (6.930,00 $ 192.252,18 $ $ 192.252,18 A A A A -> top up to 187500 9,87 9 10 11 12 13 14 15 16 -> top up to 187500 $ $ $ $ $ 1.226,90$ A A A A A A A 0 Total Cost Margin Borrowing Rate Investment Rate 187500,00 2% 1% Day Trade Price 1 $ 1.250,00 Formula Bar $ $ -> top up to 187500 -> top up to 187500 0 A A $ 3 4 5 6 7 8 A A $ -> top up to 187500 -> top up to 187500 Settlement Price Daily gain/loss ($) Cum gain/loss ($) Margin acct balance ($) Margin call ($) Amt Borrowed Interest Paid Interest Received Final Margin $ 187.500,00 $ 187.500,00 1.241,00 $ (2.700,00) $ (2.700,00)| $ 184.800,00 $ 2.705,21 $ 187.500,00 $ 10,27 $ 5,06 $ 184.794,79 1.238,30 $ (810,00) $ (3.510,00) $ 186.690,00 $ 815,01 $ 184.800,00 $ 10,13 $ 5,11$ 186.684,99 1.244,60 $ 1.890,00 $ (1.620,00) $ 189.390,00 $ $ 183.990,00 $ 10,08$ 5,19 $ 189.385,11 1.241,30 $ (990,00) $ (2.610,00) $ 188.395,11 $ $ 183.994,89 $ 10,08$ 5,16 $ 188.390,19 1.240,10 $ (360,00) $ (2.970,00) $ 188.030,19 $ $ 183.999,81 $ 10,08 $ 5,15 $ 188.025,26 1.236,20 $ (1.170,00) $ (4.140,00) $ 186.855,26 $ 649,71 $ 184.004,74 $ 10,08$ 5,12 $ 186.850,29 1.229,90 $ (1.890,00) $ (6.030,00) $ 185.610,00 $ 1.894,96 $ 183.360,00 $ 10,05 $ 5,09 | $ 185.605,04 1.230,80 $ 270,00 $ (5.760,00)| $ 187.770,00 $ $ 181.470,00 $ 9,94 $ 5,14 $ 187.765,20 1.225,40 $ (1.620,00) $ (7.380,00 $ 186.145,20 $ 1.359,64 $ 181.474,80 $ 9,94 $ 5,10 $ 186.140,36 1.228,10 $ 810,00 $ (6.570,00) $ 188.310,00 $ $ 180.120,00$ 9,87 $ 5,16 $ 188.305,29 1.211,00 $ (5.130,00) $ (11.700,00) $ 183.175,29 $ 4.329,56 $ 180.124,71 $ $ 5,02 $ 183.170,44 1.211,00 $ $ (11.700,00) $ 187.500,00 $ $ 175.800,00 $ 9,63 $ 5,14 $187.495,50 1.214,30 $ 990,00 (10.710,00) $ 188.485,50 $ $ 175.804,50 $ 9,63 $ 5,16 $ 188.481,03 1.216,10 $ 540,00 (10.170,00) $ 189.021,03 $ $ 175.808,97 $ 9,63 $ 5,18 $ 189.016,58 1.223,00 $ 2.070,00 $ (8.100,00) $ 191.086,58 $ $ 175.813,42 $ 9,63 $ 5,24 | $ 191.082,18 1.226,90 $ 1.170,00 $ (6.930,00 $ 192.252,18 $ $ 192.252,18 A A A A -> top up to 187500 9,87 9 10 11 12 13 14 15 16 -> top up to 187500 $ $ $ $ $ 1.226,90$ A A A A A A A 0 Total Cost Margin Borrowing Rate Investment Rate 187500,00 2% 1%