Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Initial margin requirement is 50%. A customer is buying 100 shares on margin at $50 per share. What is minimum cash required in account

imageimageimage

Initial margin requirement is 50%. A customer is buying 100 shares on margin at $50 per share. What is minimum cash required in account to complete transaction? Maintenance margin in short sale is 130%. A customer is short 100 shares at $60 per share. Total cash on the account is $7,000. What is the deficit on the account? Enter 0 if the minimum (maintenance) margin is satisfied and there is no deficit. Otherwise, enter the cash amount that needs to be deposited in order to satisfy the minimum margin. Initial margin is 50% and the maintenance margin is 25%. A customer is long 100 shares of a stock that is currently worth $35. A customer's margin loan is $6,000. How much additional cash the customer has to post to satisfy maintenance margin requirement? Round your answer to the nearest dollar. Assume that additional cash immediately credited towards customer's margin debt.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The initial margin requirement of 50 means that the customer needs to have at least half of the total value of the transaction in cash Lets calculate ... 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

Investments Analysis and Management

Authors: Charles P. Jones

12th edition

978-1118475904, 1118475909, 1118363299, 978-1118363294

More Books

Students also viewed these Finance questions

Question

What is relative strength analysis?

Answered: 1 week ago