If the share price falls to 30 per share by the end of the, Ask an Expert

Management Studies

Q. Dee Trader opens a brokerage account, also purchases 300 shares of internet Dreams at $40 per share. She borrows $4000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. Illustrate what is the margin in Dees account when she first purchases the stock?

If the share price falls to $30 per share by the end of the year, illustrate what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call?

Illustrate what is the rate of return on her investment?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9366594

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