Find out the equity in account

Assignment Help Finance Basics
Reference no: EM133110795

Security 1 is presently trading for 38.38. You decide to purchase 1,000 shares. Security 2 is presently trading for 88.11 and you decide to purchase 1,150 shares. Suppose you have an IMR of 50% and an MM of 25%. Interest on any borrowed funds will be charged 8% APR, monthly compounding, and you intend to utilize your margin to capacity. There is no brokerage fee to short, and you do not earn any interest on cash deposited. All your accounts are aggregated.

Exactly 3 months from now, you notice that Security 1 is trading for 86.43 and Security 2 is trading for 78.89. What will the equity in your account be at this time? Round to 4 decimal places, as 110.545.6322 for exam ple. Show all your work in order to receive credit.

Reference no: EM133110795

Questions Cloud

Investment option in terms of low risk : Risk & Return: Historical index and share price data of GAIL, ONGC, Tata Motors, Airtel & BSE is given here. You are required to determine the following:
Define fixed interest rate and variable interest rate : Why is it advantageous (disadvantageous) at times to borrow on a fixed interest rate? Why is it advantageous (disadvantageous) at times to borrow on a variable
What are the cash flows at the beginning and ending : As a result of these discounts, your expected annual sales will decrease by 2% to 980 million a year. What are the cash flows at the beginning and ending
What is the market price for a bond : What is the market price for a bond which has a $24,665,331 face value, a 2.25% coupon, a 2 October 2026 maturity, that is trading at a yield to maturity of 1.6
Find out the equity in account : Security 1 is presently trading for 38.38. You decide to purchase 1,000 shares. Security 2 is presently trading for 88.11 and you decide to purchase 1,150 share
Calculate the product cost per sleeping bag : Budgeted fixed overhead in 20x1 was $165,000 and budgeted production was 22,000 sleeping bags. Calculate the product cost per sleeping bag
Determine the net present value under the base case : The following data relates to a project whose initial cost is kshs 200,000 has a five year life and has no salvage value. Depreciation is straight-line to zero.
Diversity and culture relate to change management : What is the role of executives in the process of change management and strategic planning? How do issues with diversity and culture relate to change management?
Calculate the npv and payback period of the project : Calculate the NPV and payback period of the project (simple and discounted) if the discount rate is 12%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Market values of long-term debt

Current liabilities' book and market values stand at $8 million and the firm's book and market values of long-term debt are $15 million.

  Compute the cost of capital of the stock to firm

The dividend rate is 12%, and the par value of the stock is $100. Compute the cost of capital of the stock to your firm.

  Future value of all expected profits

If the Present Value of all estimated futures costs of a 5 year new investment project is 510, and the future value of all expected profits is 1,220, what is th

  What is the standard deviation of this portfolio

Treasury bills have an expected return of 3%, the expected market return as measured by the S &P is 11% and the S&P's standard deviation is 21%.

  Find the future value of an ordinary annuity of 8000 paid

find the future value of an ordinary annuity of 8000 paid semiannually for six years at 6 annual interest compounded

  Financial analysts forecast abc incs growth for the future

financial analysts forecast abc inc.s growth for the future to be 5. abcs recent annual dividend was 4.00. what is the

  Questions on gross anatomy of the muscular system

1. Which muscles are involved in flexion and extension of the leg?

  Would there be positive interest rates on bonds in a world

would there be positive interest rates on bonds in a world with absolutely no risk no default risk maturity risk and so

  What type of data would the survey represented and why

What types of data (categorical, ordinal, interval, or ratio) would each of the survey items represent and why?

  Reading the business of life box in chapter

You are graduating from college at the end of this semester and after reading the business of life box in this chapter you have decided

  What is the operating cash flow under base case scenario

If we don't ignore tax, what is the operating cash flow under the base case scenario? Show your work.

  What will be excel operating cycle

If average inventories are $1.75 million, and average accounts receivable are $1.15 million, what will be Excel's operating cycle?

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!

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