Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have tresury bill amounting to 65000 in your accountyou want to short sell 1000 at 1.25 per share of company B.Supposed the broker has

You have tresury bill amounting to 65000 in your accountyou want to short sell 1000 at 1.25 per share of company B.Supposed the broker has 50% initial margin.Create balance sheet and compute your margin . Assume that the price per share of company B. falls by 25%create balance sheet and your margin if you cover your short . supposed the price of the share is to increased by 62% from the fall. Create balance sheet and compute your margin.Supposed the price of the share is to increased by 62% by the fall. Will you receive amargin call if the maintenance margin by the broker is 45%?Compute forthe critical price!

This is my assignment today and i don't know what format of answer and solution should i make can anyone help me?

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

College Accounting Chapters 1- 9

Authors: James A Heintz, Robert W Parry

23rd Edition

1337794783, 978-1337794787

More Books

Students also viewed these Accounting questions

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago