Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I calculate these? Show steps, please! Account Margin. You deposit $50,000 cash in a brokerage account and short sell $100,000 of stocks on

image text in transcribedimage text in transcribedimage text in transcribedHow do I calculate these? Show steps, please!

Account Margin. You deposit $50,000 cash in a brokerage account and short sell $100,000 of stocks on margin. Later, the value of the stocks held short rises to $115,000. What is your account margin in dollars? $35,000 $85,000 $100,000 $115,000 Margin Calls. You deposit $50,000 cash in a brokerage account and purchase $100,000 of stocks on margin by borrowing $50,000 from your broker, who requires a maintenance margin of 30 percent. Which of the following is the largest value for your stock holdings for which you will still receive a margin call? $80,000 $100,000 $70,000 $60,000 Account Margin. You deposit $10,000 cash in a brokerage account and purchase $20,000 of stocks on margin by borrowing $10,000 from your broker. Later the value of your stock holdings falls to $17,500. What is your account margin in dollars? $5,000 $7,500 O $10,000 $15,000

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

The Financialized Economy

Authors: Alexander Styhre

1st Edition

0367754568, 978-0367754563

More Books

Students also viewed these Finance questions

Question

i need 6 7 7

Answered: 1 week ago

Question

Evaluating Group Performance?

Answered: 1 week ago