Total amount that you made, Accounting Basics

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Total amount that you made

Problem:

Suppose you sell short 75 shares of a stock initially selling for $95. Your margin requirement is 100%.

Required:

Question 1: What is the value of the 75 shares of stock (this is the amount you will borrow a Time 0)?

Question 2: If the stock price drops to $80 per share, what is the new value of the 75 shares of stock (this is the amount you will pay back at Time 1)?

Question 3: What is the total $ amount that you made (or lost) on the trade?

Question 4: What is your return?

Note: Explain all calculation and formulas.

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Accounting Basics: Total amount that you made

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Accounting Basics: Total amount that you made

Reference No:- TGS0884426

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Recent Questions Asked Accounting Basics

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Q : Describe the microscopic and macroscopic organization

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Q : Total amount that you made

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Ask an Expert for Answer!!

Accounting Basics: Total amount that you made

Reference No:- TGS0884426

Recent Questions Asked Accounting Basics

Q : Explain tests of all enteric bacteria stain

Q : Describe the microscopic and macroscopic organization

Q : Required rate of return on alpha stock

Q : One year holding period

Q : Total amount that you made

Q : Describe the difference between alleles and genes

Q : Price of the stock go before you get a a margin call

Q : Maximum possible loss

Q : Current bid for a stock

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