Need someone to help with investing homework. I need it in one hour! Please answer the questions on the document attached.
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You believe the stock in Freeze Frame Co. is going to fall, so you short 850 shares at a price of $58. The initial margin is 30 percent. |
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1. |
Construct the equity balance sheet for the original trade. (Input all amounts as positive values. Omit the "$" sign in your response.) |
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Assets |
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Liabilities and account equity |
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Proceeds from sale |
$ |
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Short position |
$ |
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Initial margin deposit |
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Account equity |
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Total |
$ |
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Total |
$ |
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2-a. |
Construct an equity balance sheet for a stock price of $54 per share.(Input all amounts as positive values. Omit the "$" sign in your response.) |
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Assets |
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Liabilities and account equity |
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Proceeds from sale |
$ |
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Short position |
$ |
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Initial margin deposit |
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Account equity |
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Total |
$ |
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Total |
$ |
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2-b. |
What is your margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
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Margin |
% |
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2-c. |
What is your effective annual return if you cover your short position at this price in 4 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.Omit the "%" sign in your response.) |
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Effective annual return |
% |
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3-a. |
Construct an equity balance sheet for a stock price of $63 per share.(Input all amounts as positive values. Omit the "$" sign in your response.) |
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Assets |
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Liabilities and account equity |
||
|
Proceeds from sale |
$ |
|
Short position |
$ |
|
Initial margin deposit |
|
|
Account equity |
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|
|
|
|
|
|
|
Total |
$ |
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Total |
$ |
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3-b. |
What is your margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
|
Margin |
% |
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3-c. |
What is your effective annual return if you cover your short position at this price in 4 months?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
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Effective annual return |
% |