Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you are selling short 1000 shares of company a, wh

You are selling short 1000 shares of company A, which is currently selling its shares...

90.2K

Verified Solution

Question

Accounting

image
You are selling short 1000 shares of company A, which is currently selling its shares for $100/share. This company is paying a dividend of 0.8$ per share. The initial margin is 50%. Set the initial balance sheet. Set the balance sheet in case the price goes up 20% If the maintenance margin is 40%, how much can the price increase before the investor would get a margin call? What will be the rate of return if the price of the stock fell to 90$ ? What will be the rate of return in case the price increases to 120$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Problem 13-4A Calculating financial statement ratios LO P3Selected current year-end financial statements of CabotCorporation...Problem...

Accounting
Q

Describe the historical pattern of growth of the worldwide human population since our origin. Include in...

Biology
Q

Describe a problem that you are currently faced with at work or in your personal life...

Advance Math
Q

O Yes O No Question 4 1 pts Stepfamilies formed after a parent dies are...

Biology
Q

Organization of Life Vecdalas Marching Match the correct word with its description of defrition I...

Biology
Q

Question 13 1 point Saved Consider the following measures shown in the diagram with the...

Geometry
Q

If the point (1,4) is on the graph of an equation, which statement must be...

Basic Math
Q

v 5) Bonita Company estimates uncollectible accounts using the allowance method...

Accounting
Q

amison is a single dad with two dependent children: Zoey, age 7, and Conner, age...

Accounting
Q

Crane Limited purchased 38,100 call options during the year. The options give the company the...

Accounting
Q

Please help me create a statement of owners equity for the month ending june 30,2024...

Accounting
Q

Mastery Problem: Process Cost Systems Grainy Goodness Company Grainy Goodness Company manufactures granola cereal by...

Accounting