1. The price of the 3x Leveraged ETF on Gold (tic:UGLD) is $180.The initial margin is 59%. The maintenance margin is 18%.If Amber has $8,172 in hand, how many shares of UGLD can Amber short?

Assume fractional shares can be acquired.

b. Mark is shorting 82 shares of Moderna (tic:MRNA). When Mark opened the position, the price of MRNA was $66.99. On the first day of trading, the price of MRNA was $68.21. On the second day of trading the price of MRNA was $83.77.On the third day of trading, the price was $64.94. The initial margin is 56%. The maintenance margin is 11%.

What is Mark's equity at the end of the third day, before any margin call, if any?

c. Alphabet (tic:GOOGL) is likely overvalued and so, Kim decided to short 50 shares. When she opened the position the price of GOOGL was $1,537. The current price of GOOGL is $1,322. The initial margin is 63%. Compute the value of equity at the new price.

(Note: you need to find out how much cash Kim had to put to open the position in order to answer the question).

d. The price of Matador Resources (tic:MTDR) is $10.66. Jenna wants to short 2,053 shares of MTDR. The maintenance margin is 21%, the initial margin is 47%. The yearly securities lending fee (APR) is 7.40%. If the price of MTDR is $8.66 one year after she shorted the shares, what is the value of equity in the position?

Note: the fee is computed based on the market value of the shares shorted when the position is opened.

Answer rating: 100% (QA)

Shorted Equity Calculations a Ambers UGLD position Step 1 Calculate cash requirement for initial margin ... View the full answer