an investor sells 100 shares short at $43. the sale requires a margin deposit equal to 60 percent of the proceeds of the sale. if the investor closes the position at $49, what was the percentage earned or lost on the investment? if the position had been closed when the price of the stock was $27, what would have been the percent earned or lost on the position?

Answers

Answer 1

The percentage lost on the position will be equal to 23.2%.

Investment may be defined as any asset that is made by an individual or an organization in the hope that it will prove beneficial in future. An investment can be in form of cash, deposits, gold or real estate. The individual investing the assets is known as Investor. According to the question the shares are sold at

$43 X 100 = $4,300 and

the Margin requirement = 0.6 x $4,300 = $2,580

Now, further when the price of the stock rises to $49, the investor loses $4,900 - $4,300 = $600

Therefore, the percentage lost on the invested funds is given as

($600)/$2,580 = 23.2%

Learn more about Investment at:

brainly.com/question/1400500

#SPJ4

Related Questions

after doing considerable shopping, pax has just decided what brand and type of athletic shoes to buy and where he's going to buy them. in what stage of the consumer buying decision process is pax?

Answers

Pax is the post-purchase evaluation stage of the consumer purchasing decision process.

What are the stages of the consumer buying process?There are five primary stages in the consumer decision-making process. This is the process by which consumers evaluate whether or not to make a purchase. Problem identification, information search, alternative evaluation, purchase decision, and post-purchase evaluation are the five steps. A stimulus, need recognition, information search, evaluations of alternatives, purchasing decisions, and evaluation of purchase decisions are the seven steps in the consumer decision-making process. These steps can serve as a guide for marketers to better understand and communicate with their customers. Consumer behavior is divided into four categories: habitual buying, variety-seeking, dissonance-reducing, and complex buying.

To learn more about consumer buying process, refer to:

https://brainly.com/question/23176347

#SPJ4

you are looking to purchase a property and are in negotiations with the seller and at the same time in discussions with your lender. the seller is offering the property at a price of 182,000 and you anticipate a full price offer. your lender will require a 70% loan-to-value (ltv). given these assumptions, how much will your loan amount be?

Answers

The loan amount for the house should be 127400

Given

You are trying to buy a house, and you are negotiating with the seller and talking to your lender at the same time.

You expect to receive an offer for the full asking price of 182,000 that the seller is asking for the home.

Your lender will demand a loan-to-value of 70%.

The estimated loan amount is calculated as follows

Loan amount = price of property x LTV ratio

Loan amount = 182000 x 70%

Loan amount = 127400

Therefore the loan amount is 127400 for the house.

Learn more about percentages at

https://brainly.com/question/15308590?referrer=searchResults

#SPJ4

the total of all planned real expenditures in the economy is part 2 a. aggregate consumption. b. aggregate spending. c. aggregate gdp. d. aggregate demand.

Answers

The total of all planned real expenditures is: d. aggregate demand.

What is aggregate demand?

Aggregate demand can be use as a form of measurement to determine the value of total goods produce at a particular or specific period of time.

One of the advantage of aggregate demand is that it help us to know the total quantity or amount of all product or goods that was demanded in an economy.

Therefore we can conclude that the correct option is D.

Learn more about aggregate demand here: https://brainly.com/question/1490249

#SPJ1

Other Questions

which of the following are properties of relations? question 3 options: a) each attribute has the same name. b) all columns are numeric. c) there are multivalued attributes in a relation. d) no two rows in a relation are identical. An example of a concurrent power shared by the national government and the states is * a. making foreign treaties. b. federal income and local sales taxes. c. coining money. d. regulating interstate commerce. i need help solving this and also what does the 2 that's on the top of some letters mean Help ASAP!! Which algebraic expression is equivalent to the expression below? Compute the sums below. (Assume that the terms in the first sum are consecutive terms of an arithmetic sequence.) 9 + 4 + (-1) + ... + (-536) In the ________ activity of scm, supply chain managers create a responsive and flexible network for receiving defective, returned, or excess products back from their customers, as well as for supporting customers who have problems with delivered products. Write the percent as fraction or mixed number in simplest form 750% discuss at least four potential problems in creating accurate duration estimates for activities and two methods for dealing with each potential problem Answer this question and ill mark Suppose that you follow the same path on the return trip from Dubuque to Council Bluffs. What would be thetotal number of (actual) miles for the round trip? A traffic light hangs from a pole as shown in (Figure 1). The uniform aluminum pole AB is 7.20 m long and has a mass of 11.0 kg . The mass of the traffic light is 22.0 kg .-Determine the tension in the horizontal massless cable CD.-Determine the vertical component of the force exerted by the pivot A on the aluminum pole.-Determine the horizontal component of the force exerted by the pivot A on the aluminum pole. Because diffusion depends upon random article movements substances diffuse across membrane with out requiring the cell to?c Which equation is balanced?O 2Fe +02 2Fe2O3O 3Fe +302 3Fe2O3O 4Fe +302 2Fe2O3O Fe +0 FeO3 What term describes the difference of the protons and electrons in an element? in 2010, delta products reported sales revenue of $1,000,000, cost of goods sold of $600,000, salaries expense of $80,000, total assets of $1,400,000. what was the gross profit margin for the year 2010? What are the possible values for the missing term of the geometric sequence? .004, _____, .4.04.04, -.04.0004.0004, -.0004 18. Which of the following would be able to pass through the membrane the easiest ?a. Small, hydrophobic substancesb. Small, polar substancec. Molecules like sucrose and glucosed Small, hydrophilic molecules rueben is in a biology class and the professor tells the students to find a lab partner. rueben immediately approaches an asian classmate because rueben believes that all asian students are naturally gifted in mathematics and science. ruben's mental shortcut is an example of a(n) . a. stereotype b. prejudice c. attribution d. discrimination a microscope has a x5 eyepiece lens. describe how to use this microscope to observe a prepared slide of root hair cells at a magnification of x50[4 marks] Use the figure below to find the value of x. (x + 20) y (x + 10 (y 40)