What price will you receive margin call

Assignment Help Financial Management

Reference no: EM13868396

You buy 500 shares of stock at a price of $57 and an initial margin of 65 percent. If the maintenance margin is 40 percent, at what price will you receive a margin call?

Reference no: EM13868396

Questions Cloud

New divisor for the price-weighted index : Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $57, $315, and $114, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

Calculate the NPV of the expansion : You work for a small widget-producing company. You're considering expanding the company's factory in Wichita. The expansion is projected to cost $400,000. It will produce an inflow after operating costs of $100,000 in year 1, $200,000 in year 2, and ..

Market interest rate on bonds : Grossnickle Corporation issued 20-year, noncallable, 8.1% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years..

Balance sheet and income statement items affected : How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and for different companies that are being compared and are only balance sheet items or both balance sheet and income statement items affected?

What price will you receive margin call : You buy 500 shares of stock at a price of $57 and an initial margin of 65 percent. If the maintenance margin is 40 percent, at what price will you receive a margin call?

What is annualized return on this investment : Suppose you buy stock at a price of $81 per share. Three months later, you sell it for $87. You also received a dividend of $.80 per share. What is your annualized return on this investment?

Calculate your return on investment one year later : Suppose you purchase 1,100 shares of stock at $49 per share with an initial cash investment of $18,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Calculate your return on investment one year later if t..

Anagerial accounting-finance is use of cost benefit analysis : A key technique in managerial accounting/finance is the use of “Cost Benefit Analysis” to help management make better business decisions. Define this approach in your own words and discuss 1-2 applications of this concept in the Acquisition/Contracti..

Hedging with options removes performance potentials : Hedging with options removes both upside and downside performance potentials. Options are used to insure an existing portfolio. For example, buying a put on an asset (or portfolio) reduces the risk of loss in case of a drop in value of the asset.

User Account

All Pages