You short sale a common stock on margin at $40 per share with $90,000 of your own money. Assume the initial margin is 75%
and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $50?I Ignore
interest on margin

Answer rating: 100% (QA)

To calculate the maintenance margin we need to understand how margin works and the margin call process When short selling a stock on margin you borrow ... View the full answer