We are pursuing a short-selling strategy, where we have shorted 300 shares of XYZ, at price (
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We are pursuing a short-selling strategy, where we have shorted 300 shares of XYZ, at price \(€ 40\). The initial margin required by the broker is \(50 \%\) of the overall value, and the maintenance margin is \(25 \%\). What is the limit price of the stock before we are slapped with a margin call?
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Related Book For
An Introduction To Financial Markets A Quantitative Approach
ISBN: 9781118014776
1st Edition
Authors: Paolo Brandimarte
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