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You short-sell 200 shares of Tommy co. now selling for $37 per share. If you wish to limit your loss to $1,450, you should place
You short-sell 200 shares of Tommy co. now selling for $37 per share. If you wish to limit your loss to $1,450, you should place a stop-buy order at what price?
- You purchased 250 shares of common stock on margin for $45 per share. The initial margin is 65% and the stock pays no dividend. Your rate of return would behow muchif you sell the stock at $36 per share. Ignore interest on margin.
- You sell short 100 shares of company Awhich are currently selling at $47 per share. You post the 50% margin required on the short sale. If your broker requires a 40% maintenance margin, at what stock price will you get a margin call?
- You purchased 200 shares of ABC common stock on margin at $65 per share. Assume the initial margin is 50% and the maintenance margin is 25% and there is no interest on borrowed amount. You will get a margin call if the stock drops below what price?
- You just bought200 sharesof a stock priced at $48 per share using 50% initial margin. The broker charges 4% annual interest rate on the margin loan and requires a 30% maintenance margin.One year later stock price dropped to 28 and you recieved margin call, to restore your margin to the initial margin level, how much would you need to deposit?
- You sold short 409 shares of common stock at $19 per share. The initial margin is 63%. You must put up how much your own equity?
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