Question
The stock price of Google is $537. You have $10,000 saved in a savings account. The monthly interest rate is 0.8%. A) You think the
The stock price of Google is $537. You have $10,000 saved in a savings account. The monthly interest rate is 0.8%.
A) You think the stock price will go down soon and want to trade 20 shares. What should you do? Enter 20 for buying 20 shares (on margin if necessary), or -20 for selling or short-selling 20 shares.
B) f the initial margin is 50%, what is the minimum additional dollar amount that you have to deposit in your brokerage account?
C) What is your initial percentage margin (entered as a decimal number) once you've completed the deposit calculated in part 2?
D) Two months later, the stock price is $557. Google paid a dividend of $8 per share just before the two months were over. What is your percentage margin (entered as a decimal number)?
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