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28 Sep 2019
Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share. She borrows $5,000 from her broker to help pay for the purchase. The interest rate on the loan is 5%.
a. What is the margin in Déeâs account when she first purchases the stock?
Margin [ ] $
b-1. If the share price falls to $19 per share by the end of the year, what is the remaining margin in her account? (Round your answer to 2 decimal places.)
Remaining margin [ ] %
b-2. If the maintenance margin requirement is 30%, will she receive a margin call?
Yes No
c. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Rate of return [ ] %
Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share. She borrows $5,000 from her broker to help pay for the purchase. The interest rate on the loan is 5%.
a. What is the margin in Déeâs account when she first purchases the stock?
Margin [ ] $
b-1. If the share price falls to $19 per share by the end of the year, what is the remaining margin in her account? (Round your answer to 2 decimal places.)
Remaining margin [ ] %
b-2. If the maintenance margin requirement is 30%, will she receive a margin call?
Yes | |
No |
c. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Rate of return [ ] %
Jean KeelingLv2
28 Sep 2019