Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 23, 2023

Trader gave a margin call to his client when portfolio value reached 222,222 debt to equity ratio for the portfolio is 2:1 and loan amount

Trader gave a margin call to his client when portfolio value reached 222,222 debt to equity ratio for the portfolio is 2:1 and loan amount was 200,000.

Find out percentage of margin maintenance and total initial portfolio value?

Step by Step Solution

★★★★★

3.49 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the percentage of margin maintenance we need to first calculate the minimum equity requ... 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

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

125972266X, 9781259722660

More Books

Students also viewed these Finance questions

Question

★★★★★

The following is a portion of the balance sheets of Macy's, Inc. for the years ended January 30, 2016 and January 31, 2015: Macy's debt to equity ratio for the year ended January 30, 2016, was 3.84,...

Answered: 1 week ago

Question

★★★★★

JY investment Ltd holds a well-diversified portfolio of shares that has a market value of $1.5 million on 30 June 2019. JY is concerned about possible downturns in the share market and on 1 March...

Answered: 1 week ago

Question

★★★★★

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...

Answered: 1 week ago

Question

★★★★★

Write a method remove() that takes a linked-list Node and a string key as its arguments and removes every node in the list whose item field is equal to key.

Answered: 1 week ago

Question

★★★★★

Jetty Loan Companys balance sheet reports the following: Preferred stock, $60 par value, 3%, 12,000 shares issued ............ $720,000 Common stock, $0.75 par, 1,100,000 shares...

Answered: 1 week ago

Question

★★★★★

Identify in what ledger (general or subsidiary) each of the following accounts is shown. 1. Rent Expense 3. Notes Payable 2. Accounts ReceivableOlsen 4. Accounts PayableInnis

Answered: 1 week ago

Question

★★★★★

For the events A1, A2, and A3 in the same sample space, it is known that P(Ai) = 1 2i , i = 1, 2, 3, and P(AiAi+1) = 1 2i+2 , i = 1, 2. If, in addition, we know that the events A1 and A3 are mutually...

Answered: 1 week ago

Question

★★★★★

Kirsten Neal is interested in purchasing a new house given that mortgage rates are at a historical low. Her bank has specific rules regarding an applicants ability to meet the contractual payments...

Answered: 1 week ago

Question

★★★★★

What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 7.00 percent per year, has a $1,000 par value, and is currently priced at $988? The bond can be called back in 8...

Answered: 1 week ago

Question

★★★★★

Jackson Manufacturing holds a 150-day note of $10,000 that has an interest rate of 7% annually. After 90 days, the note is sold to a bank at a discount rate of 6% annually. Find the proceeds on the...

Answered: 1 week ago

Question

★★★★★

Briefly explain and show in the table below how each of the following transactions would be entered in the Spanish balance of payments . Note that all the amounts in the Spanish balance of payments...

Answered: 1 week ago

Question

★★★★★

Waterway, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Gary King, president of Waterway, Inc., has gathered the following cost information from the...

Answered: 1 week ago

Question

★★★★★

MOLLY DISTRIBUTORS Adjusted Trial Balance December 31 Credit Debit $30,200 Cash 110,200 Accounts Receivable 94,000 Inventory 2,400 Prepaid Insurance 6,400 Supplies 85,000 Delivery Equipment...

Answered: 1 week ago

Question

★★★★★

A rescued whale is released into the ocean 400 meters due east of a coast guard station. The whale swims directly away from the shore. coast guard station point of release whale (a) Which of the...

Answered: 1 week ago

Question

★★★★★

On January 1, 20X1, Porta Corporation purchased Swick Company's net assets and assigned goodwill of $80,100 to Reporting Division K. The following assets and liabilities are assigned to Reporting...

Answered: 1 week ago

Question

★★★★★

SARAD 09 (Photo courtesy of Caterpillar) A re-seller of mining machinery, located in Stratford, Ontario, calls a CIFFA Forwarder, inquiring about shipping a used Caterpillar Grader, to Vina del Mar,...

Answered: 1 week ago

Question

★★★★★

UJJ ) 4. Build a single PLA that implements all three of these Boolean functions. Note: you will first need to ensure that each function is in sum-of-products form. A= (xy-z)+(x-y.z) B= (x+y)+(x+z)...

Answered: 1 week ago

Question

★★★★★

Solve the relation Exz:Solve therelation ne %3D

Answered: 1 week ago

Question

★★★★★

During 2018, its first year of operations, Baginski Steel Corporation reported a net operating loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 40%. Required: 1....

Answered: 1 week ago

Question

★★★★★

Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Mary would like to...

Answered: 1 week ago

Question

★★★★★

Listed below are several terms and phrases associated with cash and receivables. Pair each item from List A (by letter) with the item from List B that is most appropriately associated withit. List A...

Answered: 1 week ago

Question

★★★★★

It was hypothesized that road construction workers do not engage in productive work 20 minutes on the average out of every hour. Some claimed the nonproductive time is greater than 20 minutes. An...

Answered: 1 week ago

Question

★★★★★

For your e-mail, you use a filter to block spam from your inbox. The number of items blocked by day of week is recorded and Minitab is used to perform the analysis that follows. Here are the results:...

Answered: 1 week ago

Question

★★★★★

The City of Maumee comprises four districts. Chief of Police Andy North wants to determine whether there is a difference in the mean number of crimes committed among the four districts. He examined...

Answered: 1 week ago

Previous Question Next Question