Intro

The initial margin requirement is 60%.

The maintenance margin requirement is 30%.

Attempt 1/1

Part 1

An investor buys 1000 shares of QXZ at $75 on margin. How much money needs to be deposited in the account to meet the margin requirement?

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Attempt 1/1

Part 2

At what price will the investor receive a margin call?

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Attempt 1/1

Part 3

QXZ increases by $10. What is the investor's margin now?

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Attempt 1/1

Part 4

After the stock increased by $10 in Part 3 above, the investor sells 15 contracts of a QXZ 87 call option for $8. When the call option expires, QVZ stock has increased further by $15. What is the percentage profit to the investor?