Holly buys 500 shares of Untimely, Inc. at $44 on a 60% initial margin requirement. Maintenance margin

Fantastic news! We've Found the answer you've been seeking!

Question:

Holly buys 500 shares of Untimely, Inc. at $44 on a 60% initial margin requirement. Maintenance margin is 35% and interest rates on margin loans are 11%. In 9 months, the stock is at $68.

A. What is Holly's margin at 68?

B. What is the excess and buying power at 68?

C. When will she get a margin call?

D. If she sells at 68, what is her HPR?

E. If she had done the same trade on a cash basis, would would her HPR be?

Posted Date: Jul 11, 2024 08:07 AM

See More Questions

What is the difference between the expected growth rate in the core earnings of a business and its expected growth rate in value?
Analysts for Brazil Brewery have selected the following cost drivers: volume of beer produced (in hectoliters, i.e., 1 hL = 100 L), total amount of raw materials used (in kilograms), number of...
What exactly is management accounting, in your own words? What is the significance of management accounting, in your own words, and why?
1. The dissolution of apartnership cause by the death, insolvency, or civil interdiction of a partner is called A. Voluntary dissolution B. Involuntary dissolution C. Judicial dissolution D. None 2....
The residents of the town of Stewart are well-known coffee drinkers. Dunkin Donuts and Starbucks stores supply the residents with over 100,000 cups of hot coffee per week. Recently, coffee drinkers...
Read through the following case study and analyse it by addressing the question that follows. Case study: Adriana Adriana runs a very busy multi-sports coaching company that provides after-school...
Assuming that you were invited to one of your best friends' wedding. Therefore, you decided to purchase a special product or service as a gift for this important event. Based on this scenario, you...
The Department of Commerce, through the Economic Development Administration (EDA), is seeking information to inform the planning and design of the Regional Technology and Innovation Hub (Tech Hubs)...
In frontline management, it is essential to manage time effectively. In the table below, list 3 time-management principles that are relevant to a frontline manager's own work and provide 3 examples...

Holly buys 500 shares of Untimely, Inc. at $44 on a 60% initial margin requirement. Maintenance margin

Question:

Expert Answer:

Students also viewed these finance questions