User Account

All Pages

Effective initial and maintenance margin percentages

Assignment Help Finance Basics
Reference no: EM132395573

Assume that the effective initial and maintenance margin percentages are 50% and 30% respectively. If you short-sell 10,000 shares of IBM @ $220, how much initial margin must you post?

Reference no: EM132395573

Questions Cloud

What is the maximum amount pierre : If the current market rate is 7.25 percent, what is the maximum amount Pierre should be willing to pay for this bond?
Calculating costs of issuing stock : Video Games, Inc., with the help of its investment bank recently issued 10.12 million shares of new stock.
Borrowing and lending with financial markets : Illustrate the position of a "borrower" in the capital markets in the context of the two-period investment-consumption model.
Construct a three-period binomial tree : a) Construct a three-period binomial tree for the evolution of the futures price over the next six months.
Effective initial and maintenance margin percentages : Assume that the effective initial and maintenance margin percentages are 50% and 30% respectively. If you short-sell 10,000 shares of IBM @ $220
What geometric mean periodic return did sammy realize : Sammy pays $100,000 for 2500 shares of ZQX at date 0 and sells all those shares at date 3 for $45,000.
What is the duration of a perpetual bond : What is the duration of a perpetual bond that pays $90 per period if the appropriate yield-to-maturity is 6% per period?
Find the future value of an annuity : Find the future value of an annuity due of $9,000 paid at the beginning of each 6-month period for 8 years if the interest rate is 6%, compounded semiannually.
What would you be willing to pay for the following share : What would you be willing to pay for the following share of stock? The company's most recent dividend was $2. Dividends are expected to grow

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe what will happen if the stock is not in equilibrium

a. If the risk-free rate is 9 percent and the expected rate of return on an average stock is 13 percent, what are the required rates of return on Stocks C and D? b. For Stock C, suppose the current price, P0, is $25; the next expected dividend, D1, i..

  What was the annual percentage yield earned

Chris Orange maintains a savings deposit with Santa Paribe Credit Union. This past year Chris received $13.64 in interest earnings from his savings account.

  Assumptions needed for the completion of assignments

Note: You may create and / or make all necessary assumptions needed for the completion of these assignments. Select one (1) of the scenarios and write a four to five (4-5) page paper in which you:

  What was recent dividend per share paid on the stock

Finding the Dividend. Gontier Corporation stock currently sells for $53.95 per share. The market requires a return of 10.3 percent on the firm's stock.

  Provide a sensitivity analysis and scenario analysis

BAFN200 - Principles of Finance - Australian Catholic University - Discuss the effects on National Australia Bank the report from the Royal Commission

  Calculate the expected return on the shares

Calculate the expected return on the shares of Firm A. Calculate the expected return of a portfolio 30% invested in shares of Firm A and the remainder in shares

  What is pelamed 2006 net income

Pelamed Pharmaceuticals has EBIT of $300 million in 2006. In addition, Pelamed has interest expenses of $90 million and a corporate tax rate of 35%.

  Compare and contrast interest rate parity

Compare and contrast interest rate parity, purchasing power parity, and the international fisher effect.

  What amount of gross income does wally recognize

Assume instead that Pay More forgave the loan and interest on December 31. What amount of gross income does Wally recognize this year? Explain.

  One or more foreign stock exchanges

Many foreign companies like to cross-list their stocks on one or more foreign stock exchanges. How do cross listed stocks differ from ADRs and other depository-receipt securities? Find a cross-listed stock trading on one of the US stock exchanges...

  Weighted average cost of capital of the company

Mr. Kilunda, the managing director of the company is wondering whether to invest in a project which would cost Kshs. 20 million and yield Kshs. 3.8 million a year before tax in perpetuity. The project has an estimated beta value of 1.25. The rate ..

  Tish acquires and places in service a business machine

What is Tish's allowable 2013 Sec. 179 expense on the machine? What amount can she carry over to 2014?

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