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Q: You have $22,000 and decide to invest on margin

You have $22,000 and decide to invest on margin. If the initial margin requirement is 55 percent, what is the maximum dollar purchase you can make?

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Q: You purchase 275 shares of 2nd Chance Co. stock on margin

You purchase 275 shares of 2nd Chance Co. stock on margin at a price of $53. Your broker requires you to deposit $8,000. What is your margin loan amount? What is the initial margin requirement?

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Q: The beta of stock B is closest to: a.

The beta of stock B is closest to: a. 0.51 b. 1.07 c. 1.46

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Q: You purchased a stock at the end of the prior year at

You purchased a stock at the end of the prior year at a price of $73. At the end of this year, the stock pays a dividend of $1.20 and you sell the stock for $78. What is your return for the year? No...

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Q: Carson Corporation stock sells for $17 per share, and you’ve

Carson Corporation stock sells for $17 per share, and you’ve decided to purchase as many shares as you possibly can. You have $31,000 available to invest. What is the maximum number of shares you can...

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Q: A stock has a current share price of $49.24

A stock has a current share price of $49.24 and a dividend yield of 1.5 percent. If the risk-free rate is 5.4 percent, what is the futures price if the maturity is four months?

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Q: A non-dividend-paying stock has a current share price

A non-dividend-paying stock has a current share price of $42.60 and a futures price of $42.95. If the maturity of the futures contract is four months, what is the risk-free rate?

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Q: A non-dividend-paying stock has a futures contract with

A non-dividend-paying stock has a futures contract with a price of $94.90 and a maturity of two months. If the risk-free rate is 4.5 percent, what is the price of the stock?

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Q: A non-dividend-paying stock is currently priced at $

A non-dividend-paying stock is currently priced at $16.40. The risk-free rate is 3 percent and a futures contract on the stock matures in six months. What price should the futures be?

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Q: You are short 30 March 2016 five-year Treasury note futures

You are short 30 March 2016 five-year Treasury note futures contracts. Calculate your profit or loss from this trading day using Figure 14.1. Figure 14.1:

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