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Question 1 4 As of March 9 , 2 0 2 1 , the price of GameStop Corp. ( ticker: GME ) is $ 2
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As of March the price of GameStop Corp. ticker: GME is $ and its closing price
on March is $ You believe GME is overvalued and decide to shortsell GME. You
have $ worth of Treasury Bills in your brokerage account that can be used as collateral.
Your broker requires an initial margin of and a maintenance margin of You must also
set aside of the cash proceeds as collateral. You decide to short as many shares as you can
with the collateral you have. Pay special attention that you cannot purchaseselltrade fractional
shares.
How much cushion in dollars do you have before you receive a margin call from your broker?
That is by how much the stock price could move in the "wrong" direction before you receive a
margin call? Enter a number with two decimal points.
Your stock portfolio earned and for the last three years. What is your
annualized return for the last three years on average? Enter a number with two decimal points.
Answer the question in percentage terms, ie if your return is or enter
A stock has a return that follows the normal distribution with a mean of and a standard
deviation of What is the probability that the stock will have a return between and
The one two and threesigma probability of the normal distribution is
and Enter a number with one decimal points. Answer the question in percentage terms, ie
if the answer is enter
Your stock portfolio earned and for the last three years. What is your
annualized return for the last three years on average? Enter a number with two decimal points.
Answer the question in percentage terms, ie if your return is or enter
The market maker offers the following bids and asks with respective depth to the market:
You are not happy with the price impact from your trade so let's do it again but trade in a smaller
amount this time. Say you submit a market sell order with shares, what's your weighted
average execution price? Enter a number with two decimal points.
The market maker offers the following bids and asks with respective depths:
If you submit a market sell order with shares, what's your weighted average execution
price? Enter a number with two decimal points.
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