Initial and maintenance margins

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1. You purchased 1000 shares of stock at a price of $60/share with a margin account. The initial and maintenance margins were 70% and 20%, respectively. What was your debit balance on the day you opened your position?

2. Quantas Industries' stock sells for $125/share, but you believe the stock will decline in the near future. You have $120,000 of your own funds to invest and you've decided to create a short position on Quantas stock. What is the maximum number of shares that you can short, given that the initial and maintenance margins are 75% and 35%, respectively.

3. You purchased 300 shares of Victor stock today on margin when the stock price was $40/share. Your broker charges you a 3% rate on borrowed funds and set your initial and maintenance margin requirements at 60% and 30%, respectively. If the stock trades for $35 tomorrow, you will receive a margin call.

Reference no: EM133115927

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