Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. look like? if a limit order came into sell 500 sha

look like? If a limit order came into sell 500 shares $49.50 what would happen?...

70.2K

Verified Solution

Question

Finance

image
look like? If a limit order came into sell 500 shares $49.50 what would happen? e. 5. Suppose that Intel is currently selling at $40 per share. You buy 500 shares, using $15,000 of your own money and borrow the remainder of the purchase price from your broker. Ignore the interest rate of the margin loan. What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to i) $44; ii) S40; ii) $36? Compare your percentage return resulting from buying on margin to your percentage return from buying without borrowing money. Explain the resulting relationship a. b. c. If the maintenance margin is 25 percent, how low can Intel's price fall before you get a margin call? How would the answer change in part c) if you had financed the initial purchase with only $10,000 of your own money? d

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students