Initial margin and stock price reaches

Assignment Help Financial Management

Reference no: EM132073139

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $49 per share.

a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position?

Initial margin $

b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.)

Stock price reaches $

Reference no: EM132073139

Questions Cloud

Find and describe at least three technological components : As each generation of technology improves and changes, the availability of technology in the field of business analytics also changes.

What is the cost in today dollars of the equipment : What is the cost in today’s dollars of the equipment Saul purchased today?

Possible numbers of defective televisions purchased : Let x be the random variable whose values are the possible numbers of defective televisions purchased by the customer. What is the variance of x?

Discuss the three forms of market efficiency : The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market.

Initial margin and stock price reaches : How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?

Analyze two career options in the health care industry : Analyze two career options in the health care industry, in terms of the educational requirements, job responsibilities, and average salaries.

Confidence interval for the population proportion : Lets say 500 appointment mapping requests are received, 197 of which were mapped to an office visit. Calculate a 90% confidence interval for the population

Analyze two issues that contribute to the current nursing : Suggest two factors that are contributing to the current state of the nursing industry in the U.S. Focus on both internal and external influences.

Develop a simple innovative framework for a business concept : Develop a simple innovative framework for a business concept of your choice using the five (5) key questions (what, when, where, who, how).

User Account

All Pages