Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - A year ago an investor opened an account at a brokerage firm and promptly (a) short sold 200 shares of Company S at $120 and (b) bought 500 shares of Company L on margin at $80. Assume (1) the initial margin requirement was 60% for both margin purchases and short sales, (2) interest at an annual rate of 5% is paid by the investor on the margin loan, and (3) 3% is received annually by the investor on both the short proceeds and the short sale initial margin. The investor met the initial margin requirements for the account on the day these two transactions took place, but has not added or taken assets from the account since then (and no assets or liabilities were in the account right before the transactions took place). Neither stock pays dividends.
a. What does the investor's account look like immediately after these trades were made (that is, create the investor's initial balance sheet at the brokerage firm, showing assets, liabilities, and equity regarding the investor's account)?
b. What does the investor's account look like today (i.e., a year after these trades were made) when at closing S = $150 and L = $50? Assume earlier today that interest earned on the short proceeds and short margin as well as the interest owed on the margin loan for the margin purchase were each added to the investor's account as either an asset (for interest earned) or liability (for interest owed). (Again, create the investor's balance sheet at the brokerage firm, showing assets, liabilities, and equity regarding the investor's account "today").
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.
Briefly describe the major differences between a sole proprietorship and a corporation
Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month
What are the implied interest rates in Europe and the U.S.?
State pricing theory and no-arbitrage pricing theory
Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.
The Effect of Financial Leverage and working capital management
Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.
Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.
Time Value of Money project
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd