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NEW QUESTION: 1
Using the following assumptions, calculate the rate of return on a margin transaction and the stock price at which the investor who purchases the stock will receive a margin call.
What of the following choices is closest to the correct answer? The margin transaction return is:
A. 83.33%, and the investor will receive a margin call at a stock price of $15.43.
B. 111.11%, and the investor will receive a margin call at a stock price of $15.43.
C. 33.33%, and the investor will receive a margin call at a stock price of $15.43.
D. 111.11%, and the investor will receive a margin call at a stock price of $21.00.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
To obtain the result:
Part 1: Calculate Margin Return:
Margin Return % = [((Ending Value - Loan Payoff) / Beginning Equity Position) - 1] * 100
= [(([$24 * 1,000] - [$18 * 1,000 * 0.60]) / ($18 * 0.40 * 1,000)) - 1] * 100
= 83.33%
Alternative (Check): Calculate the all cash return and multiply by the margin leverage factor.
= [(24,000 - 18,000)/18,000] * [1 / 0.40] = 33.33% * 2.5 = 83.33%
Part 2: Calculate Margin Call Price:
Since the investor is long (purchased the stock), the formula for the margin call price is:
Margin Call = (original price) * (1 - initial margin) / (1 - maintenance margin)
= $18 * (1 - 0.40) / (1 - 0.30) = $15.43

NEW QUESTION: 2
Which option describes a service function as defined in SDN?
A. a virtual chain
B. a virtual server
C. a virtual device
D. a virtual network function
Answer: D
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 3
A server with a dual-ported HBA loses access to storage during switch SFP replacement. You want to prevent this from happening in the future.
Which action should you perform?
A. Use zoning
B. Enable trunking.
C. Configure multipathing
D. Use LUN masking
Answer: C

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