Your actual margin and rate of return for this investment

Assignment Help Financial Management

Reference no: EM131851761

1. You want to purchase ING stock at $25 from your broker. You have $3,000 to invest and the initial margin is 60%. You want to make as much investment as possible in ING STOCK, What is the maximum number of shares can you buy ?

50 shares

25 shares

500 shares

100 shares

200 shares

2. You opened a brokerage account and purchased 300 shares of BBY for $27 per share and deposit initial margin of 55% the next dav. BBY’s price drops to $52 per share what are your actual margin and rate of return for this investment?

25.32% ; -8.77%

33% ; -8.77 %

42.31%; -15.95%

50.67%, -15.95%

55% ; -15.95%

3. Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50% the maintenance margin is 30% how far does the price of the stock rise for you to get a margin call?

A) $32.2

b) $33.33

c) $34.62

D) $38.74

E) $40.50

Reference no: EM131851761

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