Caroline Rogers believes the price of Gamma Corp. stock will go down in the near future. She

Question:

Caroline Rogers believes the price of Gamma Corp. stock will go down in the near future. She has decided to sell short 200 shares of Gamma Corp. at the current market price of h47. The initial margin requirement is 40 percent. Which of the following is an appropriate statement regarding the margin requirement that Rogers is subject to on this short sale?

A. She will need to contribute h3,760 as margin.

B. She will need to contribute h5,640 as margin.

C. She will only need to leave the proceeds from the short sale as deposit and does not need to contribute any additional funds.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

Question Posted: