Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

you purchases 200 shares tlt stock at $300 per share. you borrow $25,000 from broker at 7% to help pay for per purchase. The broker's

you purchases 200 shares tlt stock at $300 per share. you borrow $25,000 from broker at 7% to help pay for per purchase. The broker's rules state the minimum initial margin must be 50% and the maintenance margin is 35%. One year later, tlt stock to drop overnight to $205 per share. Answer this second of three questions:

How much will you have to add to your account to meet the margin call as a result of tlt stock to drop ? Round to the nearest dollar

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

Gapenskis Cases In Healthcare Finance

Authors: George H. Pink

6th Edition

1567939651, 978-1567939651

More Books

Students also viewed these Finance questions

Question

Tell me about the other language(s) you speak.

Answered: 1 week ago