What is the critical price for a margin call

Reference no: EM131926259

Question: You sold short 400 shares of ABC stock at $75 a share. The initial margin is 50 percent and the maintenance margin is 30 percent. The stock is currently selling for $65 a share. Ignore margin interest and transaction costs.

(a) What is the current % margin position?

(b) If you cover the short position today, what is your return with the short sales?

Reference no: EM131926259

Questions Cloud

What is the risk-free rate of return : Assuming no arbitrage opportunities, what are the values of the unit claims, at time 0? What is the risk-free rate of return that must exist in this market?

How much money will she have to invest on january one : How much money will she have to invest on January 1, 201 n, to meet her goal of $500,000 at the end of the sixth year?

State briefly the reasons for your investment strategy : State briefly the reasons for your investment strategy. State a source from which you would get information on which to base your investment strategy.

What will be its cost of equity and What will be its WACC : Suppose Max's debt-equity ratio increases to 1.0. What will be its cost of equity? What will be its WACC?

What is the critical price for a margin call : You sold short 400 shares of ABC stock at $75 a share. The initial margin is 50 percent and the maintenance margin is 30 percent.

How much will the mass of the solid decrease : If the molar mass of the solid in the cell is 300 g mol-1 and its vapour pressure is 0.224 Pa at 450 K, by how much will the mass of the solid decrease.

What will the value of your portfolio be : What will be the value of your portfolio in January (net of the proceeds from the options) if the stock price ends up at $30? $40, $50?

What should be the production schedule for the four months : A manufacturer of integrated circuits is planning production for next four months. What should be production schedule for IC341 and IC256 for the four months?

represented in the net present value of investment : The difference between the _____ and the _____is represented in the net present value of an investment. Please have explanation.

User Account

All Pages