Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You bought 100 shares of XLE for $61 using 70% initial margin. if the stock is currently trading for $60, what is your current margin

You bought 100 shares of XLE for $61 using 70% initial margin. if the stock is currently trading for $60, what is your current margin (in percent)?

Part 2

You bought 500 shares of GE for $55 using 60% initial margin. If the maintenance margin is 30%, at what price would you get a margin call?

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_2

Step: 3

blur-text-image_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

The Psychology Of Trading Tools And Techniques For Minding The Markets

Authors: Brett N. Steenbarger

1st Edition

0471267619, 9780471267614

More Books

Students also viewed these Finance questions