Question
You just sold short 650 shares ofWetscope, Inc., a fledgling software firm, at $75 per share. You cover your short when the price hits $77
You just sold short 650 shares ofWetscope, Inc., a fledgling software firm, at $75 per share. You cover your short when the price hits $77 per share one year later. If the company paid $0.52 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent.(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 900 shares at $46 per share with an initial margin of 60 percent. One year later, the stock is selling for $52 per share and you close out your position. What is your return assuming no dividends are paid?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Carson Corporation stock sells for $91 per share, and you've decided to purchase as many shares as you possibly can. You have $61,146 available to invest. What is the maximum number of shares you can buy if the initial margin is 50 percent?(Do not round intermediate calculations. Round your answer to the nearest whole number.)
You purchase 550 shares of 2nd Chance Co. stock on margin at a price of $55. Your broker requires you to deposit $15,500.
a.Suppose you sell the stock at a price of $62. What is your return?
in the previous problem,what would your return have been had you purchased the stock without margin?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
The text of the previous problem is copied here for your convenience:
You purchase 550 shares of 2nd Chance Co. stock on margin at a price of $55. Your broker requires you to deposit $15,500.Suppose you sell the stock at a price of $62.
Suppose you hold a particular investment for 6 months. You calculate that your holding period return is 7 percent. What is your annualized return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
You have $68,000 and decide to invest on margin. If the initial margin requirement is 75 percent, what is the maximum dollar purchase you can make?(Round your answer to the nearest whole number.)
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