Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help me please it has 3 parts 1,2,anf 3 thanks Intro Suppose you just bought the new Windoze 8 and that you realize that it
help me please it has 3 parts 1,2,anf 3
Intro Suppose you just bought the new Windoze 8 and that you realize that it is really bad. As a result you are sure that the price of Microsoft stock (currently trading for $35.5) is going to fall and you tell your broker to short 120 shares. Part 1 Attempt 1/5 for 10 pts. If the broker's initial margin is 50%, what is the value of personal assets you must add to your account to meet the margin requirement? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. Assume you have added to your account the value of personal assets determined in part 1. If the broker has a maintenance margin of 30%, what is the highest value the price of Microsoft stock can reach before you are issued a margin call? 1+ decimals Part 3 | Attempt 1/5 for 10 pts. If the price of Microsoft stock falls to $20, what is the profit you make from the short sale (in $)? 0+ decimals thanks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started