Solution-Compute the equity balance in your account

Compute the equity balance in your account

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Reference no: EM133032673

PROBLEM - You are very optimistic about the personal computer industry, so you buy 200 shares of Microtech Inc. at $45 per share. You are very pessimistic about the machine tool industry, so you sell short 300 shares of King Tools Corporation at $55. Each transaction requires a 50 percent margin balance.

a. What is the initial equity in your account?

b. Assume the price of each stock is follows for the next three months (month end). Compute the equity balance in your account for each month.

Reference no: EM133032673

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Compute the equity balance in your account

Reference no: EM133032673

Reference no: EM133032673

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