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    Exploring Various Concepts in Asset Management

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    In order to get full elaboration of the concepts of Asset Management kindly give me model answers to the attached set of questions.

    See the attachment.

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    https://brainmass.com/business/black-scholes-model/exploring-various-concepts-asset-management-541575

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    1. We have,
    Number of shares bought=100
    Purchasing price of stock=$100 per share
    Initial Margin=60%
    Margin=100*$100*60%=$6,000

    Assets Liabilities and Equity
    100 Shares, Stock A 100*$100=$10,000 Margin Loan $4,000
    Account Equity $6,000
    Total $10,000 Total $10,000

    2. We have,
    Number of shares bought=100
    Purchasing price of stock=$70 per share
    Initial Margin=60%
    Margin=100*$70*60%=$4,200

    Assets Liabilities and Equity
    100 Shares, Stock A 100*$100=$10,000 Margin Loan $5,800
    Account Equity $4,200
    Total $10,000 Total $10,000

    Actual ...

    Solution Summary

    The solution assists with exploring various concepts in asset management.

    $2.19

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