QUE 2) In a short selling attempt, you are investing 20,000 TRY to short sell 40,000 TRY of five stocks. Daily cost of maintaining you position at the brokerage house is 250 TRY. Daily opening and closing prices are given in the table below. You need to calculate the actual margin at the end of each day and find out whether a margin call is required or not. If so, bring cash to meet the margin requirement. At the end of day five, find out your rate of return from this strategy. END OF 1. DAY END OF 2. DAY END OF 3. DAY END OF 4. DAY END OF 5. DAY EQUITY AMOUNT 20000 EQUITY AMOUNT EQUITY AMOUNT EQUITY AMOUNT EQUITY AMOUNT EQUITY AMOUNT TOTAL VALUE OF STOCKS 40000 TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES DAILY COST OF SHORT SELLING 250 DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING NUMBER OF STO TOTAL VALUE AFTER SHORT SELLING 8000 8000 8000 8000 5 8000 + 8 STOCKA STOCKB STOCK STOCK D STOCKE 1. DAY OPENING PRICE 10 25 50 100 200 CLOSING PRICE 14 32 60 120 240 2. DAY OPENING PRICE 13 30 55 95 200 CLOSING PRICE 12 28 52 90 210 3. DAY OPENING PRICE 11 26 50 85 195 CLOSING PRICE 10 22 45 4. DAY OPENING PRICE 9 20 42 78 180 CLOSING PRICE 8 18 40 75 178 5. DAY OPENING PRICE 7 16 36 72 178 END OF THE TERM CLOSING PRICE INVESTMENT AMOUNT 5 12 32 60 160 80 185 0,5 Initial Margin Maintenance Margin 0,5 RATE OF RETURN 0,41 0,4 Initial Margin Maintenance Margir Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margin Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margin Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margin Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margi Actual Margin Margin Call TOTAL EQUITY QUE 2) In a short selling attempt, you are investing 20,000 TRY to short sell 40,000 TRY of five stocks. Daily cost of maintaining you position at the brokerage house is 250 TRY. Daily opening and closing prices are given in the table below. You need to calculate the actual margin at the end of each day and find out whether a margin call is required or not. If so, bring cash to meet the margin requirement. At the end of day five, find out your rate of return from this strategy. END OF 1. DAY END OF 2. DAY END OF 3. DAY END OF 4. DAY END OF 5. DAY EQUITY AMOUNT 20000 EQUITY AMOUNT EQUITY AMOUNT EQUITY AMOUNT EQUITY AMOUNT EQUITY AMOUNT TOTAL VALUE OF STOCKS 40000 TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES TOTAL VALUE OF SHARES DAILY COST OF SHORT SELLING 250 DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING DAILY COST OF SHORT SELLING NUMBER OF STO TOTAL VALUE AFTER SHORT SELLING 8000 8000 8000 8000 5 8000 + 8 STOCKA STOCKB STOCK STOCK D STOCKE 1. DAY OPENING PRICE 10 25 50 100 200 CLOSING PRICE 14 32 60 120 240 2. DAY OPENING PRICE 13 30 55 95 200 CLOSING PRICE 12 28 52 90 210 3. DAY OPENING PRICE 11 26 50 85 195 CLOSING PRICE 10 22 45 4. DAY OPENING PRICE 9 20 42 78 180 CLOSING PRICE 8 18 40 75 178 5. DAY OPENING PRICE 7 16 36 72 178 END OF THE TERM CLOSING PRICE INVESTMENT AMOUNT 5 12 32 60 160 80 185 0,5 Initial Margin Maintenance Margin 0,5 RATE OF RETURN 0,41 0,4 Initial Margin Maintenance Margir Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margin Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margin Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margin Actual Margin Margin Call TOTAL EQUITY 0,5 Initial Margin 0,4 Maintenance Margi Actual Margin Margin Call TOTAL EQUITY
