A trader buys 200 shares of a stock on margin. The price of the stock is $20
Question:
A trader buys 200 shares of a stock on margin. The price of the stock is $20 per share. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially? For what share price is there a margin call?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (5 reviews)
To calculate how much money the trader has to provide initially we first need to find the total cost ...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
A trader buys 200 shares of a stock on margin. The price of the stock is $20. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially?...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Jake and Jhenna are considering buying 200 shares of stock ABC each. ABC stock is currently selling for $75. Jake wants to buy the 200 ABC stocks using $9,000 of his own money and borrowing the...
-
An LNC can detect alterations in the record by Select one: a. Examining notes written in the margin b. Looking through late entries for detailed explanations c. Finding a doctor's explanation that is...
-
Suppose you have a teammate at work. Who is not doing their fair share of the work? You have already spoken to the teammate, but he just shrugs his shoulders and continues to "do the minimum." You...
-
For each molecule or polyatomic ion in the following problems, (a) Draw the electron group geometry, (b) Name the shape of the molecule, (c) Estimate the size of all the bond angles in the molecule...
-
Company donations to charity. The amount a company donates to a charitable organization is often restricted by financial inflexibility at the firm. One measure of financial inflexibility is the ratio...
-
Analyzing Items to Be Included in Inventory Walker Company has just completed a physical inventory count at year-end, December 31, 2011. Only the items on the shelves, in storage, and in the...
-
Barlow Manufacturing has announced plans to acquire Hull Enterprises. Barlow is trading for $31.50 per share and has a premerger value of $12 billion, while Hull is trading for $21.75 per share and...
-
A company's investments earn the floatingrate minus 0.5%. Explain how it can use the quotes in Table 5.5 to convert them to (a) three, (b) five, and (c) tenyear fixedrate investments. Table 5.5 Swap...
-
What is the difference between the margin required by an exchange from one of its members for a future contract and the margin required by a broker from one of its clients?
-
Multiple regression was used to estimate the effect of coaching on SAT-Mathematics scores. Data on 3,492 students (573 of whom were coached) were used to fit the model, E(y) = 0 + 1x1 + 2x2, where y...
-
Question 4 25 p J Mart is considering purchasing a new inventory control system featuring state-of-the-art technology. Two vendors have submitted proposals to supply J Mart with the new system. The...
-
ME 2352 Design Optimization Assignment TWO, due February 6th, 2024, 4:00 pm University of New Brunswick Department of Mechanical Engineering 1. By use of definition of linear dependency determine if:...
-
IKEA's People and Planet Positive sustainability plan, launched in 2012, aims to contribute to a better life for people and a better future for the planet. The plan outlines several sustainable goals...
-
Question 4 [25 marks] A cantilever beam AB is fixed to a wall and is subjected to concentrated and distributed loads as shown in figure B1. a) Draw the free-body diagram of the problem. [5 marks] a)...
-
GMC is an Australian farm machinery manufacturer, operating since 1975. The company makes high-quality farm machinery and equipment including a range of slashers, mowers, aerators, mulchers and...
-
How does the IRS interpret the continuity of interest doctrine for a Type A reorganization?
-
The overall reaction and equilibrium constant value for a hydrogenoxygen fuel cell at 298 K is 2H 2 (g) + O 2 (g) 2H 2 O(l) K = 1.28 10 83 a. Calculate E cell and G 8 at 298 K for the fuel cell...
-
How do Key Risk Indicators help companies identify emerging risks?
-
How should the Board and CEO evaluate a CROs performance and contribution to the Company?
-
What would the ideal working relationship be between the CRO and CFO?
-
Corom Stack Standard CALCULATOR PRINTER VERSION BACK NEXT Problem 13-02A a-c (Part Level Submission) Sheffield Corporation had the following stockholders' equity accounts on January 1, 2020: Common...
-
Suppose that you own 2,100 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $115 per share. a. What will be the number of shares that you hold...
-
Diplomatic Security Service provides Airport Transportation and Surveillance Service to Foreign Diplomats in Guyana. The company has two support departments - Information Systems and Equipment...
Study smarter with the SolutionInn App