What is your initial margin requirement

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Reference no: EM131304777

Toyota TM

Sales price $133.46

Purchase price $119.05

Shares sold 1000

Initial margin requirement 0.50

Increased price $162.00

Maintenance margin requirement 0.30

1) What is your initial margin requirement?

2) Suppose you buy the stock at the purchase price and repay your broker. What is your return on this short?

3) How high can Toyota go before you receive a margin call?

4) Suppose the price rises to the increased price. What is your margin?

5) What is the amount of your margin call?

Suppose you can’t meet the margin call.

6) What is your maximum market value?

7) What is the reduction needed to return your account to an acceptable margin?

8) How many shares is your broker going to buy?

9) What is the new value of your loan?

10) What are your new total assets?

Reference no: EM131304777

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