PPT Slide

• Cost of Oct. 19th stock: 100 x $170 = $17,000

• Money John can take home $25,000

• Beginning Margin = $15,000

• Profit = $10,000

Jan.

1987

Aug.

1987

Oct. 19,

1987

DJIA

2000

2700

1700

200

270

170

DJI

John’s intention

• Total Collateral = $42,000

• On Oct. 19th, buy back the 100 shares at $170/share.

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