Gained or lost from your original investment

Assignment Help Financial Management

Reference no: EM13894311

Suppose that you have $82,500 to invest and would like to purchase 1500 shares of ABC Corp.'s shares which are currently trading for $100.00 per share. Law requires that all brokers have an Initial Margin of 50% but your broker demands a 55% Initial Margin. Also, your broker requires 35% Maintenance Margin at all times. Suppose that, instead of going long (buying) ABC Corp.'s stock, you were actually shorting the stock. If the price went to $125 how much would you have in gained or lost from your original investment of $82,500?

a) +$37,500

b) +/- $0

c) -$13,751

d) -$45,000

Reference no: EM13894311

Questions Cloud

Which leadership practice or practices would be appropriate : What is your initial impression of which leadership practice or practices would be appropriate and why? How well does the company you have chosen exemplify application of the five discovery skills of innovation leaders

Calculations using financial calculator : A client invests $5,000 every year, at the end of each year, beginning one year from today, for the next five years. The account is expected to earn 6.25% What will the balance be in five years. An investor deposits $5,750 in a certificate of deposit..

Derive the income- consumption curve : Derive the income- consumption curve. Use the cases when the income is either doubled or cut by half. Then, use the income-consumption curve to derive the Engel curve.

Identify and analyze the global trends : For this assignment, identify and analyze the global trends that influenced the need for Nayar to create a more innovative organization. Explain the relationship between the global trends and Nayar's role as a leader of innovation

Gained or lost from your original investment : Suppose that you have $82,500 to invest and would like to purchase 1500 shares of ABC Corp.'s shares which are currently trading for $100.00 per share. Law requires that all brokers have an Initial Margin of 50% but your broker demands a 55% Initial ..

Hr policies and procedures - medical leave case scenario : Imagine you are an HR consultant to the organization involved in this situation. The organization wants to be responsive and fair. What do you recommend?

Discovery skills of disruptive innovators : For this discussion, explain why it is important for innovation leaders to understand global trends. What is the connection between global trends and the five discovery skills of disruptive innovators

Where you show a utility maximizing choice for the consumer : Suppose there are two goods a consumer can choose between, and that the prices are equal. First, construct a diagram, with quantities on the X- and Y-axes, where you show a utility maximizing choice for the consumer.

Why do virtual memory systems include a modified bit : Why do virtual memory systems include a modified bit in the page table entry?

User Account

All Pages