Title: principles of investment Question 2: You have purchased 10,000 shares of XYZ Company on...
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Accounting
Title: principles of investment Question 2: You have purchased 10,000 shares of XYZ Company on margin at a price of OMR 0.400 per stock. Your broker requires 50% initial margin and 20% maintenance margin.
(a) Draw a balance sheet and show the amount of equity and loan. [1 mark]
(a) If the stock price rises to OMR 0.420 per stock. Show the amount of change in equity and loan. [1 mark]
(b) How far the price of stock can go down before you receive a margin call? [2 marks]
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