(Answered) A trader opens a brokerage account and short sells 300

Finance

A trader opens a brokerage account and short sells 300 sharesof a risky stock at $55 per share. She deposits $8000 cash into her account. If the maintaince margin is 30%, what is the minimum change (accurate to 2 decimal places) in the stock price that will trigger a margin call?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92466254
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

You want to borrow 36000 from your local bank to buy a new

You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR ...

What are some alternative methods that can help teach

What are some alternative methods that can help teach companies about the culture of where they want to do business before they make the move?

How you will adjust your small business cash budget to

How you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts?

Describe a bank accepted bill and explain the role of the

Describe a bank accepted bill, and explain the role of the acceptor, payee, drawer and discounter, in the context of bank accepted bills.

A project has an initial outlay of 4623 it has a single

A project has an initial outlay of $4,623. It has a single payoff at the end of year 3 of $8,869. What is the net present value (NPV) of the project if the company's cost of capital is 12.43 percent?

You have just made your first 5200 contribution to your

You have just made your first $5,200 contribution to your retirement account. Assume you earn a return of 12 percent per year and make no additional contributions. a. What will your account be worth when you retire in 43 ...

An organization considers two mutually exclusive real

An organization considers two mutually exclusive real estate projects with identical initial investments of US $100,000.00 but different expected cash flows. The organization requires a 10 percent return on these types o ...

Question - a person wishes to buy a 150000 apartment the

Question - A person wishes to buy a $ 150,000 apartment. The down payment is 20 percent and the balance is to be financed at 9 percent p.a. over the next 30 years. What would be the monthly mortgage payment?

Stock x has a beta coefficient of 20 and stock y has a beta

Stock X has a beta coefficient of 2.0 and stock Y has a beta coefficient of 1.5. The expected rate of return on an average stock is 11% and the risk-free rate is 5%. By how much does the required rate of return on the ri ...

A 2-year treasury security currently earns 197 percent over

A 2-year Treasury security currently earns 1.97 percent. Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.60 percent per year. Calcula ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert