User Account

All Pages

What price per share will you get a margin call

Assignment Help Finance Basics
Reference no: EM133075970

You short 25,000 shares of FaceSpace, Inc. at $320/share. The initial margin requirement is 50% and the maintenace margin is 35%.

-At what price per share will you get a margin call? How much money would you have lost if the stock did hit that price?

-Now assume the price of FaceSpace shares fall to $300 and you decide to "press you bet" by shorting more shares. You feel comfortable increasing the amount of your equity margin back up to the dollar amount of your original position when the stock was priced at $320/share. Assuming the initial margin percentage remains at 50%, how many additional shares could you short?

Reference no: EM133075970

Questions Cloud

Choose to investigate whistle-blowing : Choose to investigate whistle-blowing or the impact of gender balance in management, either of which would fit under the broad coverage of social context.
Find the cost per mile : The cost of maintenance and repair for Anne's new car last year was $542. If she traveled 18,000 miles last year, find the cost per mile (to the nearest cent)
Negotiate for something outside of class : Negotiate for something outside of class and reflect on what happened and why. What happened? What outcomes were achieved, for both parties?
Determine the net cash flow per day from adopting the system : The daily interest on money market securities is.02%, then determine the net cash flow per day from adopting the system
What price per share will you get a margin call : You short 25,000 shares of FaceSpace, Inc. at $320/share. The initial margin requirement is 50% and the maintenace margin is 35%.
Calculate the expected return and variance : Suppose that there are 2 stocks and 5 states of the world. Each state can occur with equal probability. Given the returns in the table below:
Describe how you feel you improved your knowledge-skills : Describe how you feel you improved your knowledge, skills, abilities, and yourself in this class.
What would be the maximum amount of new project : If the company wants to finance a new project, what would be the maximum amount of new project that the firm can finance without issuing any additional stocks
Is futures contract fairly priced : You have a diversified portfolio of U.S equities. Your portfolio has a value of $10 million, and a beta of 1.5. Its volatility is 25% per annum, while the volat

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

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 ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

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

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

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.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd