At what call price will you get a margin call

Assignment Help Financial Management

Reference no: EM131026224

You entered into future contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance is $2,500 9meaning that yur broker leaves you alone until account balance falls to $2,500) At what call price will you get a margin call?

A) $1.2750/€ B) $1.1728/€ C) $1.5800/€ D) $1.0272/€

Reference no: EM131026224

Questions Cloud

What is the present value of this growing perpetuity : You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $21,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use ..

Analysis period for the four mutually exclusive alternatives : A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do-something" and one "do-nothing" alternatives. Use a 10-year analysis period for the four mutually exclusive alternatives. At the end of Yea..

Illustrate what was the unemployment rate : The U.S. government reported in July 2004 that there were 75.6 million people not in the labor force; 147.9 million in the civilian labor force also 139.7 million employed. Based on these numbers, Illustrate what was the unemployment rate?

Planning to accumulate money by investing : To buy his son a car for his sixteenth birthday, Mark is planning to accumulate money by investing his Christmas bonuses for the next five years in a security which pays a 10 percent annual rate of return. The car will cost $20,000 at the end of the ..

At what call price will you get a margin call : You entered into future contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance is $2,500 9meaning that yur broker leaves you alone until account balance falls to $2,500) At what call price will you get a margin..

A stock is expected to pay a dividend : A stock is expected to pay a dividend of $1.81 at the end of the year. The required rate of return is rs = 11.82%, and the expected constant growth rate is g = 7.3%. What is the stock's current price? Round your answer to two decimal places

Calculate the required rate of return for global equity fund : Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market's required rate of return is 13.75%, the risk-free rate is 4.95%, and the Fund's assets..

Which asset would a risk-averse manager prefer : Assets A B C D Initial investment $15,000 $15,000 $15,000 $15,000 Annual rates of return Pessimistic 8% 5% 3% 11% Most Likely 12% 12% 12% 12% Optimistic 14% 13% 15% 14% Which asset would a Risk-Averse Manager prefer? show me your work that leads to y..

Compute the issue price of each of the bonds : Compute the issue price of each of the following bonds. Round your answers to the nearest dollar. ?b. $10,000,000 face value, serial bonds repayable in 40 equal semiannual installments of $500,000, which includes coupon payments and repayment of prin..

User Account

All Pages