Question
Security 1 is presently trading for 91.56. You decide to purchase 1,500 shares. Security 2 is presently trading for 81.77, and you decide to purchase
Security 1 is presently trading for 91.56. You decide to purchase 1,500 shares. Security 2 is presently trading for 81.77, and you decide to purchase 1,250 shares. Suppose you have an IMR of 50% and an MM of 25%. Interest on any borrowed funds will be chargedO6.5% APR, monthly compounding, and you intend to utilize your margin to capacity. There is no brokerage fee to short, and you do not earn any interest on cash deposited. All your accounts are aggregated. Exactly 3 months from now, you notice that Security 1 is trading for 89.56 and Security 2 is trading for 75.30. What will the equity in your account be at this time? Round to 4 decimal places, as 110,545.6322 for example.
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