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

Question

1 Approved Answer

You have decided to take a short position in Citigroup which is currently priced at $40 per share assuming the initial margin requirement is 50%

You have decided to take a short position in Citigroup which is currently priced at $40 per share assuming the initial margin requirement is 50% at what price per share will you receive a margin call assuming a 25% minimum margin requirement

image text in transcribed
QUESTION 5 You have decided to take a short position in Citigroup which is currently priced at $40 you receive a margin call assuming a 25% minimum margin requirement

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

Healthcare Finance An Introduction To Accounting And Financial Management

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis Gapenski PhD

3rd Edition

1567932320, 978-1567932324

More Books

Students also viewed these Finance questions

Question

★★★★★
A DI has the following assets in its portfolio: $20 million in cash reserves with the Fed, $20 million in T-bills, and $50 million in mortgage loans. If the assets need to be liquidated at short...

Answered: 1 week ago

Question

★★★★★
Which of the following is not true concerning the efficient markets hypothesis? a. Markets that are less organized are not as likely to be efficient. b. Markets with wide fluctuations in prices...

Answered: 1 week ago

Question

★★★★★
preparing for and completing job interviews and considering offers.

Answered: 1 week ago

Question

★★★★★
A random sample of size n = 50 is taken from a population with mean = - 9.5 and standard deviation =2. a. Calculate the expected value and the standard error for the sampling distribution of the...

Answered: 1 week ago

Question

★★★★★
Sage Hill Supply sells products that carry a two - year warranty. Any defective product is replaced with a new item taken from inventory. Management believes that this is the most cost - effective...

Answered: 1 week ago

Question

★★★★★
What is the difference between a Windows Authentication and a SQL Server Authentication?

Answered: 1 week ago

Question

★★★★★
If Neon Lights, LLC has gross receipts of $25 million for the taxable year, they will not be considered an SSTB if less than what percentage of their gross receipts are attributable to an SSTB...

Answered: 1 week ago

Question

★★★★★
The CFO of Spotify Inc. has summarized its free cash flows for the next three years in the following table. The cash flows are expected to grow at a constant growth rate 2.00% afterwards. The company...

Answered: 1 week ago

Question

★★★★★
The Department of Investments purchased a parcel of land for $160,000 and proceeded to pay $8,000 for sewage services, $12,000 to survey the land, and $15,000 to pave a driveway. If the property was...

Answered: 1 week ago

Question

★★★★★
Aaron Mechanic, CFA is responsible for valuing the shares of Duotronics Research Laboratories (DRL). The stock is currently trading at $8.75 and he gathers the following financial information about...

Answered: 1 week ago

Question

★★★★★
You have just been served with legal documents that suggest that you were scrubbed in on a procedure in which your patient was burned. You are charged with negligence. For what reasons could you be...

Answered: 1 week ago

Question

★★★★★
How real is fake news? This activity provides an opportunity to consider which information and evidence is trustworthy. What criteria should be applied to judge the truth or the reliability of...

Answered: 1 week ago

Question

★★★★★
understand differences and connections between a text, a document, and a work.

Answered: 1 week ago

Question

★★★★★
What is fake news? This activity provides an opportunity to consider which information and evidence is trustworthy. What criteria should be applied to judge the truth or the reliability of...

Answered: 1 week ago

Previous Question Next Question