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Social Science Clinic => Business => Finance => Topic started by: yulisa3298 on Mar 29, 2022

Title: Kensington Company stock was selling at $132 a share when Charlotte sold 300 shares of the stock ...
Post by: yulisa3298 on Mar 29, 2022

Question 1

Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?
◦ $4.73
◦ $5.25
◦ $6.75
◦ $9.64

Question 2

Kensington Company stock was selling at $132 a share when Charlotte sold 300 shares of the stock short. Today Charlotte bought 300 shares of the same stock at a price of $140 per share to cover her position. Ignoring trading costs, what is the dollar return on Charlotte's investment?
◦ $2,400
◦ -$800
◦ $800
◦ $-2,400

Title: Kensington Company stock was selling at $132 a share when Charlotte sold 300 shares of the stock ...
Post by: risolinick@gmail.com on Mar 29, 2022

Answer 1

$9.64

Answer 2

$-2,400

Title: Re: Kensington Company stock was selling at $132 a share when Charlotte sold 300 shares of the stock
Post by: Danial Harith 1255 on May 17, 2022

thank you

Title: Re: Kensington Company stock was selling at $132 a share when Charlotte sold 300 shares of the stock
Post by: Nur Izz Damia on May 17, 2022

thank you