1. You want to purchase ING stock at $25 from your broker. You have $3,000 to invest and the initial margin is 60%. You want to make as much investment as possible in ING STOCK, What is the maximum number of shares can you buy ?
50 shares
25 shares
500 shares
100 shares
200 shares
2. You opened a brokerage account and purchased 300 shares of BBY for $27 per share and deposit initial margin of 55% the next dav. BBY’s price drops to $52 per share what are your actual margin and rate of return for this investment?
25.32% ; -8.77%
33% ; -8.77 %
42.31%; -15.95%
50.67%, -15.95%
55% ; -15.95%
3. Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50% the maintenance margin is 30% how far does the price of the stock rise for you to get a margin call?
A) $32.2
b) $33.33
c) $34.62
D) $38.74
E) $40.50