I have a large Finance question that I need help answering. Here it is: Company

Margin level one year later: = $50×50%+$7 = $32 B) Percentage return: = ($7-$50×50%×6%)÷($50×50%) = 22%

ID: 2422306 • Letter: I

Question

I have a large Finance question that I need help answering. Here it is:

Company ABC buys 1000 shares @ $50 per share

Company XYZ buys 2000 shares @ $40/share

Company ZZZ sells 1000 shares short @ $40/Share

Company PDQ sells 1000 shares short @ $45/share

There are 3 scenarios where the price of each stock changes to a new price per share:

a) Calculate the average margin % of the combined account for EACH scenario

b) For scenario 1, what is the max pyramiding amount allowed?

c) For Scenario 2, what is the dollar amount restriction on the account?

d) For Scenario 3, what is the amount margin call issued by the broker?

Thank you in advance for the help!

Scenario 1 Scenario 2 Scenario 3 ABC $60 ABC $45 ABC $40 XYZ $55 XYZ $37 XYZ $30 ZZZ $45 ZZZ $45 ZZZ $60 PDQ $50 PDQ $50 PDQ $58

Margin level one year later:

= $50×50%+$7

= $32

Percentage return:

= ($7-$50×50%×6%)÷($50×50%)

= 22%

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