Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 30, 2024

The stock of Flop Industries is trading at $35. You feel the stock price will decline, so you short 300 shares at an initial margin

The stock of Flop Industries is trading at $35. You feel the stock price will decline, so you short 300 shares at an initial margin of 55 percent. If the maintenance margin is 25 percent, at what share price will you receive a margin call?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance Fundamentals

Authors: K. Moeti

3rd Edition

148512946X, 9781485129462

More Books

Students also viewed these Finance questions

Question

★★★★★

Jansen Corporation shipped $20,000 of merchandise on consignment to Gooch Company. Jansen paid freight costs of $2,000. Gooch Company paid $500 for local advertising which is reimbursable from...

Answered: 1 week ago

Question

★★★★★

Which of the following can be used by a user to interact with an operating system? A . application interface B . BIOS interface C . command line interface D . Graphical user interface?

Answered: 1 week ago

Question

★★★★★

5. On average, 50-year-old workers are paid several times more than workers in their teens and twenties. Which of the following options is the most likely explanation for that huge difference in...

Answered: 1 week ago

Question

★★★★★

Hill Fine Instruments manufactures trumpets, trombones, tubas, and other brass instruments. The following standards were developed for a line of trumpets: During April, Hill scheduled 550 trumpets...

Answered: 1 week ago

Question

★★★★★

# Change your C code here ( if different ) #int main ( ) { # B [ 0 ] = 1 ; / / 0 th element = A [ 0 ] ^ 0 = 1 # for ( int j = 1 ; j Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Siegle Company exchanged 1,000 shares of Guinn Company common stock, which Siegle was holding as an investment, for equipment from Mayo Company. The Guinn Company common stock, which had been...

Answered: 1 week ago

Question

★★★★★

Identify and describe a company similar the type of business you have selected that you have a working knowledge of. Review the company's operations management functions and identify strengths and...

Answered: 1 week ago

Question

★★★★★

Problem 5 ABS Manufacturing had the following production for the month of July: Units Work in process at July 1 10,000 Started during July 40,000 Completed and transferred to finished goods 33,000...

Answered: 1 week ago

Question

★★★★★

Harper Products signed a contract with Cranmore Manufacturing to design, develop, and produce a specialized plastic molding machine for its factory operations. The machine is not currently sold to...

Answered: 1 week ago

Question

★★★★★

You acquired 5 long futures contracts for oil. The standard contract size is 1,000 barrels. The agreed strike price is P110,000 per barrel to be delivered one month from now. The current price of a...

Answered: 1 week ago

Question

★★★★★

a. Merck's common shares i. Merck is authorized to issue 5,400,000,000 shares of common stock. ii. As of December 31, 2007, Merck had issued 2,983,508,675 shares of common stock. iii. The common...

Answered: 1 week ago

Previous Question Next Question