What will be the actual margin in your account

Assignment Help Financial Management
Reference no: EM131622428

You buy 500 shares of BHC stock at $80 a share on margin. The initial margin is 50% and the maintenance margin requirement is 30%. If the stock price drops to $60, what will be the actual margin in your account?

a. 67%

b. 50%

c. 33%

d. 25%

2. If a portfolio manager wanted to hedge the risk associated with a substantial downturn in the US stock market, which of the following would be an appropriate strategy to implement?

a. Sell off all foreign-owned securities within the portfolio

b. Sell S&P500 futures contracts

c. Purchase call options on currently held US stocks

d. Purchase more US stocks now

Reference no: EM131622428

Questions Cloud

Risk to developing mucor pneumonia : WBC elevated related to infection, lymphocytes 10% due to compromised immune system, PaO2 59 mg the patient is hypoxic on room air;
Compute the cost and markup for the wiper blades : AutoZone sells Anco windshield wiper blades for $9.99 and has a markup rate of 62% based on cost. What is the cost and markup for the wiper blades?
Define the law while she has been assisting the attorneys : a law firm for several years, and learned a lot about the law while she has been assisting the attorneys, and decides she wants to get a license to practice law
Find the cost and markup of each box of cards : Charlie at the 7th Inning sells Topps baseball cards for $65 a box and has a markup rate of 45% based on cost.
What will be the actual margin in your account : what will be the actual margin in your account?
Provide substantiating evidence : Refer to "Sallie Mae Fisher's Health History and Discharge Orders" for specifics related to the case study used to inform the assignment.
What is the rate of markup based on suggested retail price : The manufacturer's suggested retail price for a refrigerator is $1,499 and it costs $385. What is the rate of markup based on the suggested retail price?
Define jurisdiction : On what bases could a private dispute be decided in Federal Court, Define Enforcing a Judgment.
Evaluate the problem related to the hale trailers : Hale's Trailers purchases 16-ft trailers for $395 and sells them for $795. What is the rate of markup based on the selling price?

Reviews

Write a Review

Financial Management Questions & Answers

  How much profit you can make based on triangular arbitrage

if you had us 100000 to invest, how much profit you can make based on triangular Arbitrage?

  What impact does the impairment of goodwill

What impact does the impairment of goodwill have on Zarto Inc’s financial statements?

  Replacing old assembly line-what is the net investment

IBM is replacing an old assembly line that cost $80,000 five years ago, If IBM has a marginal tax rate of 40 percent, what is the net investment?

  Find two consecutive years of financial statements

Provide recommendations for future business activity based upon your assessment. Cite references from your library research to support your conclusions of the company's performance based upon your analysis and financial ratio evaluations

  What amount of the payroll department costs

What amount of the payroll department costs wll be allocated to the molding department?

  Based on your knowledge of aggregate demand

The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy. Provide support for your response.

  Stock price after recapitalization

Lee Manufacturing's value of operations is equal to $900 million after a recapitalization (the firm had no debt before the recap). Lee raised $300 million in new debt and used this to buy back stock. Lee had no short-term investments before or after ..

  Calculated create company income statement-balance sheet

In the Chapter Light homework you were given the following information on ABC Enterprises. In its closing financial statements for its first year in business. ABC Enterprises, had cash of $242. accounts receivable of $850. inventory of $820. net fixe..

  Returns on crash-n-burn computer stock over past five year

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 2 percent, -12 percent, 16 percent, 22 percent, and 18 percent. What is the variance of these returns?

  What is aida cost of debt and debt to equity ratio

AIDA has 10.3 million shares of common stock outstanding. What is AIDA cost of debt and debt to equity ratio?

  Finance the equipment with one year loan

The equipment dealer has agreed to finance the equipment with a? 1-year loan. what effect would this have had on the cost of the bank loan? alternative?

  Economic system lies between capitalism and communism

What type of economic system lies between capitalism and communism? Explain why it is more effective than other economic systems. Discuss the positive aspects of globalization, and contrast these with the negative aspects of globalization from the pe..

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!

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