Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John establishes the following positions using 50% margin at 15% interest rate per year, 300 shares of ABC Inc. at $50 250 shares of XYZ

image text in transcribed
John establishes the following positions using 50% margin at 15% interest rate per year, 300 shares of ABC Inc. at $50 250 shares of XYZ Inc. at $35 400 shares of LMN Inc. at $40 Suppose that the John's broker will make margin call at 35%. Assuming that stock prices of ABC and XYZ increase by 5% during the year, at what share price of LMN Inc., John would receive a margin call? Select one: a. $26.64 b. $23.12 c. $25.56 d. $27.11 e. $24.17 Next page landin Salutis MacBook Pro 1 2 $ 4 3 % 5 6 8 7 8 9 0 Q W E R T C Y 0 A S D F G I J K

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Finance questions

Question

Differentiate between the current ratio and the quick ratio.

Answered: 1 week ago