If you place a stop-loss order to sell 100 shares of stock at $55 when the current price is $62, how much will you receive for each share if the price drops to $50? (Please provide your rationale, otherwise the quarter of the full score will be given.)
Q: ou decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of…
A: Rate of return on investment is the return expressed in percentage terms that is expected on the…
Q: What is the rate of return when 10 shares of Stock A, purchased for $30/share, are sold for $380?…
A: The rate of return is the net gain or loss incurred in the investment, expressed as a percentage of…
Q: Suppose you decide that the Bear Company stock is selling at too high a price at its current $50 per…
A: Total Profit/loss is amount of gain/loss per share multiplied with number of shares
Q: A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance…
A: Initial Margin is used to be paid upfront when we buy Shares under future call. Additional margin is…
Q: Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.20 dividend every…
A: Preferred stock price = Annual dividend/required return
Q: Bedeker, Ic., has an issue of preferred stock outstanding that pays a $4.15 dividend every year in…
A: Preferred Stock are financial assets issued by entities whose holders are entitled following…
Q: Assume an initial margin requirement of 50% and a maintenance margin of 30%. An investor buys 100…
A: The answer is given below:
Q: If you place a stop-loss order to sell 100 shares of stock at $55 when the current price is $62, how…
A: Note stop order is kind of facility to sell stock if stock price fall below the specified price.…
Q: You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the…
A: Rate of return: A rate of return is the net gain or loss on an investment over a specified time…
Q: The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the…
A: 1) In mathematically worth is equal in both shares option and bonus option. meanwhile, the worker…
Q: You sell 100 shares of stock short for 40$ per share. You want to limit your loss on this…
A: The question is based on the concept of trading in stock market, investors can use different methods…
Q: You decide to sell short 100 shares of Github Industries when it is selling at its yearly high $56.…
A: The conceptual formula used:
Q: Kareem received a retroactive salary payment of $100,000 and has decided to invest the full amount…
A: When you meet the criteria for margin trading, you can borrow money against your existing stocks to…
Q: What is the rate of return when 30 shares of Stock A, purchased for $15/share, are sold for $480?…
A: Rate of return = Net income/investment Net income = sales proceeds - investment Sales proceeds =…
Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years…
A: The required return on the stock represents the total return earned on the stock. This return is…
Q: Assume an initial margin requirement of 50% and a maintenance margin of 30%. An investor buys 100…
A: Data given: Initial Margin requirement = 50% Maintenance margin = 30% No. of shares bought = 100…
Q: Imagine that you are holding 5,000 shares of stock, currently selling at $40 per share. You are…
A: Note: If Initial outlay is $5,000, buy 5,000 puts and write 5,000 calls:
Q: You are selling short 1000 shares of company A, which is currently selling its shares for…
A: When shares are sold on a short sale, it means that the transaction is effected by using shares…
Q: What would be the value of one right? (Do not round intermediate calculations and round your…
A: Information Provided: Subscription Price = $74 Stock price = $96
Q: The margin requirement on a stock purchase is 30%. You fully use the margin allowed to purchase 200…
A: The term stocks or shares refers to the equity security that is issued by the company to raise…
Q: and
A: Formula for rate of return on investment: ROI = Net profit/cost of investment
Q: . You decided to buy 100 shares of ABM Corp. Currently, it is trading at $43 per share. You think…
A: solution concept placing a limit order When we place the limit order for the purchase…
Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin…
A:
Q: Suppose you own 1,000 common shares of Laurence Incorporated. The EPS is $12.00, the DPS is $5.00,…
A: Adjusted EPS is the number of shares outstanding in addition to the existing ones if all convertible…
Q: A speculator sells a stock short for $71 a share. The company pays a $2.50 annual cash dividend.…
A: Computation:
Q: You short-sell 150 shares of ABC Co., now selling for $30 per share. If you wish to limit your loss…
A: No. of shares =150 Selling price = $30 per share Loss limit = $1300
Q: The Bulldogs Inc.’s stock price is believe to decline from its current level of P125 anytime during…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: You short-sell 150 shares of ABC Co., now selling for $30 per share. If you wish to limit your loss…
A: No. of shares =150 Selling price = $30 per share Loss limit = $1300
Q: You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You…
A: Given: Number of shares = 200 shares Price per share = $25 Margin required = 50% Maintenance margin…
Q: You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is…
A: Holders of common stock have specific rights, common shareholders get the following privileges:…
Q: You sell short 400 shares of MIZ which are currently selling at $ 15 per share . You post the 30 %…
A: Shares Short =400 Short Price = $15 Total value = Shares Short * Price = 400*15 =…
Q: Recently, yoU sold 1200 shares of stock for $76750. The sale was a short sale with an initial margin…
A: The margin on the shares refers to the charges and amount kept with the broker for the purchase and…
Q: You have opened a new account to sell short 1,000 shares of Nicola stock at $100/shr. Initial margin…
A: Margin call is the call which occurs when price goes below the maintenance ratio. When that happens…
Q: Suppose you bought 100 shares of IBM at $200 per share. What is the max loss if you place a stop…
A: Stop loss order means an order to broker to sell share when stock price reaches to certain specific…
Q: A manager buys three shares of stock today, and then sells one of those shares each year for the…
A: Let R1, R2 and R3 be the returns for year 1, 2 and 3
Q: You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of…
A: Margin call is received when our margin percent falls below maintenance margin
Q: ABC Co. believes that XYZ Corporation’s stock price is going to decline from its current level of…
A: The put option is the option that gives the buyer the choice but not the obligation to sell the…
Q: It is believed that Blue Co.'s stock price is going to decline from its current level of P88.50…
A:
Q: You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and…
A: The formula used is shown:
Q: You sold short 200 shares of Stock B at $25 per share. You have put additional $2,500 to meet the…
A: Here, Price of the Stock B is $25 No. of Shares are 200 Initial Margin Requirement is $2,500…
If you place a stop-loss order to sell 100 shares of stock at $55 when the current price is $62, how much will you receive for each share if the price drops to $50? (Please provide your rationale, otherwise the quarter of the full score will be given.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- suppose you short sell 100 shares of IBX, now selling at $172 per share. (a) what is your maximum possible loss? (b) what happens if you simultaneously place a stop-buy order at $182?You own 200 shares of Shamrock Enterprises that you bought at $25 a share. The stock is now selling for $45 a share.a. You put in a stop loss order at $40. Discuss your reasoning for this action. b. If the stock eventually declines in price to $30 a share, what would be your rate of re-turn with and without the stop loss order?If you place a stop-loss order to sell 500 shares of Nedbank at R130 when the current price is R135, how much will you receive for each share if the price drops to R127? a. Close to R127 ○ b. Close to R130 ○ c. Close to R135 d. Won't sell because the price is too low
- If you place a stop-loss order to sell at $52 on a stock currently selling for$55.50 per share, what is likely to be the minimum loss you willexperience on 100 shares if the stock price rapidly declines to $49.50 pershare? Explain. What if you had placed a stop-limit order to sell at $52,and the stock price tumbled to $49.50?A put is the option to sell stock at $54. It expires after three months and currently sells for $2 when the price of the stock is $55. If an investor buys this put, what will the profit be after three months if the price of the stock is $60? $54? $48? Round your answers to the nearest dollar. Use a minus sign to enter loss values, if any. If the answer is zero, enter "0". Price of the stock Profit on the position in the put $60 $ $54 $ $48 $ What will be the profit from selling this put after three months if the price of the stock is $60? $54? $48? Round your answers to the nearest dollar. Use a minus sign to enter loss values, if any. If the answer is zero, enter "0". Price of the stock Profit on the position in the put $60 $ $54 $ $48 $You sell short 200 shares of DTI that are currently selling at $25 per share. You post additional $2,500 to meet the 50% initial margin requirement. What is your margin if the stock price changes to $23.7? Enter your answer as a decimal, rounded to three decimal places. Your Answer:
- Suppose that you sell short 1000 shares of Xtel, currently selling for $50 per share, and give your broker $40,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $55; (ii) $50; (iii) $46? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) b. If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call? (Round your answer to 2 decimal places.) c. Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $2 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)An investor sells a stock short for $97 a share. The company pays a $4.70 annual cash dividend. After a year has passed, the seller covers the short position at $85. If the margin requirement is 57 percent, what is the percentage return earned on the investment?Redo the calculations, assuming the price of the stock is $103 when the investor closes the position.Based on your calculations to both scenarios, what generalization can be inferred?You’ve borrowed $22,000 on margin to buy shares in Ixnay, which is now selling at $32 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $22 per share. a. Will you receive a margin call? multiple choice No Yes b. How low can the price of Ixnay shares fall before you receive a margin call? (Round your answer to 2 decimal places.) Margin call will be made as price _______ or lower.
- Suppose that an investor purchases the common stock at the current market price of $58/share and simultaneously sells for $12 a call to buy the shares at the strike price of $50. At the expiration of the call, price of stock is $77. What is the net profit on the position for this investor? (Round your answer the nearest dollar, do not enter with the dollar sign)Suppose you decide that the Bear Company stock is selling at too high a price at its current $50 per share price. You are convinced that the price of Bear stock will fall in the next couple of months, so you decide to sell 100 shares of Bear stock short. Ignoring transactions costs, if the Bear Company does not pay dividends, what is your profit or loss if the stock’s price goes to: $40 and you buy at that price to cover your short?Suppose that you sell short 1,000 shares of Xtel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account.a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $22; (ii) $20; (iii) $18? Assume that Xtel pays no dividends.b. If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call?c. Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $1 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid.