FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tina sells short 1,200 shares of Alpha Inc. that are currently selling at $54 per share. She posts the 50% margin required on the short

image text in transcribed

Tina sells short 1,200 shares of Alpha Inc. that are currently selling at $54 per share. She posts the 50% margin required on the short sale. Her broker requires a 30% maintenance margin. The firm pays no dividends. Tina earns no interest on the funds in her margin account. At what stock price will Tina get a margin call? A. $62.3/share B. $65.7/share C. $77.1/share OD. $41.5/share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Valuing Agile The Financial Management Of Agile Projects

Valuing Agile The Financial Management Of Agile Projects

Authors: Alan Moran

1st Edition

0117082880, 9780117082885

More Books

Students also viewed these Finance questions

Question

★★★★★
Assume that in January 2010, an Oatmeal House restaurant purchased a building, paying $56,000 cash and signing a $107,000 note payable. The restaurant paid another $61,000 to remodel the building....

Answered: 1 week ago

Question

★★★★★
True Or False Under the terms of a collision insurance policy, the insurer can seek payment from the insured if the insured is responsible for the damage to the vehicle.

Answered: 1 week ago

Question

★★★★★
Discuss how students beliefs and attributions about control, the nature of knowledge, mindsets, and self-worth can influence motivation.

Answered: 1 week ago

Question

★★★★★
You are working as Network Design Engineer with local service provider and your manager has asked you to propose the design for the below cellular architecture shown in Figure 1. In your design...

Answered: 1 week ago

Question

★★★★★
1. (Efficient Market Hypothesis) A stock purchased at $Pt provides an annual dividend of $D a. How do you make a forecast of its price next year? b. What is the rate of return if it were to sell next...

Answered: 1 week ago

Question

★★★★★
is not one of the fundamental data types in C + + . a . int b . char c . float d . string

Answered: 1 week ago

Question

★★★★★
Costco is running a member-only sales program for Carnival cruise vacation. There are totally 600 cabins on the cruise ship. Fixed cost is $15,000 (includes fuel cost for roundtrip, salary for crews...

Answered: 1 week ago

Question

★★★★★
1. Using indicial notation, prove the following (where W is a second-order tensor field and a and b are vector fields). Explain your derivation in detail. ( b)W = (Wb)

Answered: 1 week ago

Question

★★★★★
The income statement reports earned income on _____, and the cashflow statement is based on ______. Question 4Answer a. An accrual-basis, accrual basis accounting b. A cash-basis, accrual-basis...

Answered: 1 week ago

Question

★★★★★
Designing the Distribution Network for Michaels Hardware Ellen Lin, vice president of supply chain at Michaels Hardware, was looking at the financial results from the past quarter and thought that...

Answered: 1 week ago

Question

★★★★★
In which of the following situations would you need to use the SALUTE service recovery model? Veterans call your clinic and are dissatisfied with their experiences at the VA. Fellow employees come to...

Answered: 1 week ago

Question

★★★★★
2. Explain how the Self-Talk Endless Loop in Figure 4.1 can help individuals like Vickie Stringer.

Answered: 1 week ago

Question

★★★★★
Identify the characteristics of people with low and high selfesteem.

Answered: 1 week ago

Question

★★★★★
3. Lets assume that you have been hired to study the series of mix-ups that involved personnel employed by Automatic Elevator, Cardinal Health, and Duke Hospitals; propose your recommendation that...

Answered: 1 week ago

Previous Question Next Question