Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You believe the stock in Freeze Frame Cas going to tal.se you shon 900 shares at a price of $64. The initial margin is 70

image text in transcribed
image text in transcribed
You believe the stock in Freeze Frame Cas going to tal.se you shon 900 shares at a price of $64. The initial margin is 70 percent 1. Construct the gutty balance sheet for the engine trade. Toput ait amounts positive values. Omit the sign in your response! Liabilities and account equity Assets Proceeds from sale Initial margin deposit 57600 Short position Account outy Total 57600 28800 Total SADC 6400 2. Construct an equity balance sheet for stock price of SSS per share. Input all a. amounts as positive values. Omit the "S" sign in your response Assets Labies and account equity 19500 57600 2000 Proceeds from sale Initial margin deposit Total Short position Accountity SACO Total 00 2.What is your margin (Round your answer to 2 decimal places. Omit the *** sign in b. your response) Margin 2 What is your effective annual retum if you cover your short position at this price in 3 c.months? (Round your answer to 2 decimal lace Omit the sign in your response.) Effective annual return 3 Construct an equity balance sheet for stock price of $09 per share input a a. amounts as positive values. Omit the sign in your response) Assets Proceeds from sale Initis margin deposit Lines and account equity Short position Account wity Total Total 3 What is your margint Round your answer to 2 decimal aces. Omit the sign in b your response.) Margin 3- What your effective annual return if you cover your short position at this price in 3 c. months? (Negative amounts should be indicated by a minut sign. Round your answer to 2 decimal places. Omit the sign in your response Effective annuni return You believe the stock in Freeze Frame Co is going to fol so you shorts sharest price of $64. The initial margin is 70 percent 1. Construct the equity balonce sheet for the original de rost mounte positive values. Om the sign in your response duty AN Proceeds from sale margin deposit SRO 2000 Short position Account Equity 500 00 Total GOO Total DGADO Construct equity balance sheet for stock price of $55 per share input amounts poultive values Omit the sign in your response Assets d areataly Proceeds from sale Initi margin depo SNO 20000 Short position Account ut CRO co DO Total CO 2. What is your margin? Round your answer te 2 decimal places. Om b. your response) sign in Mergin 2. What is your effective and retum you cover your short on his price is 3 months Round your answer to 2 decina places in these in your response Effective 3 Construct an equity balance sheet for Mockice of Sport amounts es positive values. Omit the sign in your Sot position Proceeds some margin deposit To 2

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

Entrepreneurial Finance

Authors: J . chris leach, Ronald w. melicher

4th edition

538478152, 978-0538478151

More Books

Students also viewed these Finance questions