Margin Assignment | Homework For You
January 31st, 2020
PLEASE ANSWER PART D AND EXPLAIN HOW TO GET THE NUMBER FOR “AMOUNT BORROWED” THANK YOU!
Margin: Assume your brokerage account requires an initial margin of 50% and a maintenance margin of 30%. Assume you have $15,000 in cash in your account.
A. How many whole shares of Facebook can you buy if FB is $195/share?
B. If FB falls to $175/share (~10% loss of value), how much money will you have lost?
C. If FB increases to $250/share (~28% gain), how much money will you have made?
D. At what price will you receive a “margin call” for FB?