Suppose that Intel currently is selling at $78 per share. You buy 250 shares using $10,000 of your own money, borrowing the remainder of the purchase…

Suppose that Intel currently is selling at $78 per share. You buy 250 shares using $10,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 5%.a. What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to: (i) $84.24; (ii) $78; (iii) $71.76? (i) Percentage gain(ii) Percentage gain(iii) Percentage gainb. If the maintenance margin is 25%, how low can Intel’s price fall before you get a margin call? Margin call will be made at price $ or lower c. How would your answer to part (b) would change if you had financed the initial purchase with only $9,750 of your own money? Margin call will be made at price $ or lower d. What is the rate of return on your margined position (assuming again that you invest $10,000 of your own money) if Intel is selling after 1 year at: (i) $84.24; (ii) $78; (iii) $71.76? (i) Rate of return %(ii) Rate of return %(iii) Rate of return$e. Continue to assume that a year has passed. How low can Intel’s price fall before you get a margin call? Margin call will be made at price $ or lower

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more