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Standard & Poor's Projects
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  1. Margin Download the historical stock prices for Tootsie Roll Industries (TR) under the "Mthly. Adj. Prices" link. Assume you purchased 400 shares of Tootsie Roll stock at the closing price six months ago. The initial margin requirement is 50 percent and the maintenance margin is 30 percent. Show the account balance sheet based on monthly closing prices for the last five months. At what stock price will you receive a margin call? Are any margin deposits required over this period? What is your return on this investment?
  2. Short Sales Download the historical stock prices for Ford (F) under the "Mthly. Adj. Prices" link. Assume you short sold 200 shares of Ford stock at the closing price six months ago. The initial margin requirement is 50 percent and the maintenance margin is 30 percent. Show the account balance sheet based on monthly closing prices for the last five months. At what stock price will you receive a margin call? Are any margin deposits required over this period? What is your return on this investment?





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