An investor has equity of $250,000 in SPY (S & P 500 ETF). He doubles...
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An investor has equity of $250,000 in SPY (S & P 500 ETF). He doubles the investment using the brokers margin assuming a 0.5 initial margin. If the maintenance margin is 0.35, determine:
- The SPY current price
- Price at which there will be a margin call (MC)
- % decline in which there will be a MC
- Required action if there is a MC
- If SPY had increased by 14% in one year, calculate the ROI.
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