User Account

All Pages

Account to restore the maintenance margin

Assignment Help Finance Basics
Reference no: EM132062288

You sell short 100 shares of the ERT stock at $60 per share. Assume your broker requires an initial margin of 50% and a maintenance margin of 25%. If the stock price increases to $80, how much money do you have to add to your account to restore the maintenance margin of 25%?

Reference no: EM132062288

Questions Cloud

Minimum value of the contract : Based on the minimum value of the contract, if Dan sells his call at yesterday's close, what would his return be?
What would henry''s taxes on this transaction be : Yesterday, when the market price of the stock was $70, the call buyer exercised his option to purchase the shares from Henry.
Drop below the maintenance margin : If the stock price increases above a certain level, P, the percentage margin would drop below the maintenance margin of 25% and you will get a margin call
What is the balance in margin account : What is the balance in your margin account at the end of Wednesday?
Account to restore the maintenance margin : If the stock price increases to $80, how much money do you have to add to your account to restore the maintenance margin of 25%?
Substance and form of financial statements : Please describe the difference between the substance and form of financial statements. Give an example of each
Estimate the npv of the project : a) Estimate the NPV of the project. Show your work. b) What is the additions to NWC during year 1 of the project?
Research methodology in the field of management : RBP020L003S - Management Research Methods - Develop a deep understanding of the epistemology and ontology bases for research, as well as research methodology
Explain the strengths and weaknesses of the approach : Using the Web or other resources, do a bit of research on the methodologies that Microsoft Windows firewall uses. Consider the strengths and weaknesses.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd