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Question 11 (10 marks) You would like to buy 500 shares of Simee Corporation which is currently selling for 530 per share. The initial margin
Question 11 (10 marks) You would like to buy 500 shares of Simee Corporation which is currently selling for 530 per share. The initial margin is so% and maintenance margin is 40%. Ignore brid- ask spread and interest cost of bomwing The stock price il cach time is as follows: Time Stock price per stare 1 530 2 3 532 2. (2 mark) How much is your equity and loan at time t = !? B. (3 mark) What is your margint when t = 2? Will you get a margin call at 22 c. 2 marks) At what price will you get a margin call? 4 (3 marks) What is your rate of retur if you place a $22 stop-loss sell order of 500 shares and a 533 limitsell under of S00 shares Question 11 (10 marks) You would like to buy 500 shares of Simee Corporation which is currently selling for 530 per share. The initial margin is so% and maintenance margin is 40%. Ignore brid- ask spread and interest cost of bomwing The stock price il cach time is as follows: Time Stock price per stare 1 530 2 3 532 2. (2 mark) How much is your equity and loan at time t = !? B. (3 mark) What is your margint when t = 2? Will you get a margin call at 22 c. 2 marks) At what price will you get a margin call? 4 (3 marks) What is your rate of retur if you place a $22 stop-loss sell order of 500 shares and a 533 limitsell under of S00 shares
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