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##### 1. Last week, you sold short 400 shares of stock for \$33.00 a share

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Question;1. Last week, you sold short 400 shares of stock for \$33.00 a share. The initial margin requirement is 65% and the maintenance margin is 30%. Today, that stock is selling for \$36.00 a share. Construct a balance sheet for this short sale reflecting today's values. What is the current margin position?Other Requirements: #2 Robin sold 800 shares of a non-dividend paying stock this morning for a total of \$29440.00. She had purchased these shares on margin nine months ago at a cost per share of \$35. The initial margin requirement on this stock is 60% and the maintenance margin is 30%. Robin pays 1.2% over the call money rate of 4.9%. What is her return on this investment? How much would have been her return if she had bought the shares in cash?#3 You bought a put option contract with a strike price of \$37.50 and a premium of \$1.80. At expiration, the stock was selling for \$35 a share. What is your net total profit assuming that you dispose of your shares on the expiration date?

Paper#48503 | Written in 18-Jul-2015

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