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Suppose you short sell 100 shares of IBM, now selling at $120 per share. What is your maximum possible gain, neglecting transactions expenses? What is your maximum loss?

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1)A T-bill with face value $87,000 and 21 days to maturity has a discount from par bid and ask of 4.6%;and 4.4%, respectively. What is the price of the T-bill? What is the T-Bill's bond equivalent yield;2) A T-bill with face value $10,000 and 87 days to maturity is selling at a discount of par of 99 1/32.;What is the price of the T-bill? What is the T-Bill's bond equivalent yield?;3) Suppose an asset you currently own was bought for $105,516 and is now worth $650,000. What is the;total, standard return this asset has produced? What is the asset's log return?;4) Suppose an asset you currently own was bought for $105,516 and is now worth $650,000. Additionally;the asset has produced $50,321 in cash flows since you have owned it. What is the total, standard return;this asset has produced? What is the asset's log return?;5)Suppose you short sell 100 shares of IBM, now selling at $120 per share. What is your maximum;possible gain, neglecting transactions expenses? What is your maximum loss?;6) Dee Trader opens a brokerage account, and purchases 300 shares of Internet Dreams at $40 per share.;The broker requires an Initial Margin of 65% and a Maintenance Margin of 40%.;a.) What is the total value of Dee's equity position?;b.) How much does Dee put up initially?;c.) How much does Dee's broker put up initially?;d.) At what point would Dee face a Margin Call?;e.) If the price goes up to $50...;* What is the stock's (standard) return?;* What is the strategy's (standard) return?;* What is the strategy's excess (standard) return?;* Did Dee face a Margin Call?;* If Dee did face a Margin Call, what is the Shortfall she needs to make up?;f.) If the price goes down to $20...;* What is the stock's (standard) return?;* What is the strategy's (standard) return?;* What is the strategy's excess (standard) return?;* Did Dee face a Margin Call?;* If Dee did face a Margin Call, what is the Shortfall she need to make up;7) Suppose that you bought IBM 5 years ago at a price of $128 per share. The price has increased to $150...;a.) What is Standard Return for IBM's Stock over the entire 5 year period assuming IBM paid no;dividends over the 5 years?;8)Suppose that you bought GE 6 years ago at a price of $128 per share. The price has decreased to $75...;a.) What is Standard Return for GE's Stock over the entire 6 year period assuming that GE paid no;dividends over the 6 years?;b.) What is the Log Return for GE's stock over the entire 6 year period assuming that GE paid no;dividends over the 6 years?;c.) What is Standard Return for GE's Stock over the entire 6 year period assuming that GE paid $2.50 in;dividends in each of the 6 years?;d.) What is the Log Return for GE's stock over the entire 6 year period assuming that GE paid $2.50 in;dividends in each of the 6 years?;e.) What impact did dividends have on GE's calculated returns?;f.) Find the annually-compounded year-by-year return for parts a-d;b.) What is the Log Return for IBM's stock over the entire 5 year period assuming IBM paid no;dividends over the 5 years?;c.) What is Standard Return for IBM's Stock over the entire 5 year period assuming IBM paid $2.50 in;dividends in each of the 5 years?;d.) What is the Log Return for IBM's stock over the entire 5 year period assuming IBM paid $2.50 in;dividends in each of the 5 years?;e.) What impact did dividends have on IBM's calculated returns?;f.) Find the annually-compounded year-by-year return for parts a-d;9) Suppose that, over a 125 day period, Mike Inc.'s stock price experienced (positive) Standard Returns of 12%.;a.) Convert the Standard Return into a Log Return.;b.) What would the annualized Standard Return be?;c.) What would the annualized Log Return be?;Additional Requirements;Min Pages: 4;Max Pages: 6;Level of Detail: Show all work

 

Paper#29578 | Written in 18-Jul-2015

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