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please choose all the correct answers. thank you are buying 100 shares of Zoom Video Communications, Inc, at the market price of $500 per share.
please choose all the correct answers. thank you
are buying 100 shares of Zoom Video Communications, Inc, at the market price of $500 per share. You have $30,000 of your own money and borrows the rest of money for the purchase of the stock. The interest rate on the loan is 8%. Suppose you meet your broker's initial margin requirement and maintenance margin is 40% of the value of the position. Please choose all correct answers related to the following questions. a. If the share price falls to $350 per share by the end of the year, what is the remaining margin in your account? b. What is the rate of return on your investment if the share price falls to $350 per share by the end of the year? c. Assume that a year has passed. How low can the stock price fall before you get a margin call? d. Assume that you shorted 100 shares at the market price and a year has passed. How high can the stock price go before you get a margin call? Please choose all correct answers. Please note that each incorrect answer will reduce the score by 10% If the share price falls to $350 per share by the end of the year, the remaining margin in your account will be 38.29% (B) If the share price falls to $350 per share by the end of the year, the remaining margin in your account will be 69.14% (C) If the share price falls to $350 per share by the end of the year, the remaining margin in your account will be 48.15% The rate of return on your investment will be 55.33% if the share price falls to $350 per share by the end of the year. (E) The rate of return on your investment will be 19.33% if the share price falls to $350 per share by the end of the year. (F) The rate of return on your investment will be 45.33% if the share price falls to $350 per share by the end of the year. G Assume that a year has passed. You will get a margin call if the stock price falls to 360 (H) Assume that a year has passed. You will get a margin call if the stock price falls to 180. (1) Assume that a year has passed. You will get a margin call if the stock price falls to 260 Assume that you shorted 100 shares at the market price and a year has passed. You will get a margin call if the stock price goes to $571.42 Assume that you shorted 100 shares at the market price and a year has passed. You will get a margin call if the stock price goes to $500.60 Step by Step Solution
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