Recently, we heard about hedge funds losing money on their short positions placed on shares of GameStop. On January 27, Andrew Left of Citron Research said in a YouTube video: "Covered the majority of the short in the $90s at a loss of 100%." Suppose Citron shorted 1 million shares with initial margin at 50% and maintenance margin at 35%. Ignore all commission fees. Use Andrew Left's statement that they closed all positions at 100% loss at $90 per share to imply the initial price at which the short sale was executed. What is the price at which Citron placed the short sale?

Answer rating: 100% (QA)

Answer The price at which Citron took the position was 60 Posting 30 Million as a part of the Initia... View the full answer