Question
You short sell 100 shares of TSLA at $280/share. The initial margin is 60% and the current brokerage call rate is 7%. Assuming that 50
You short sell 100 shares of TSLA at $280/share. The initial margin is 60% and the current brokerage call rate is 7%. Assuming that 50 days later, TSLA share price has risen to $360/share.
Will you get a margin call if the maintenance margin is 30%?
If so, how much is the margin call?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To determine whether you will receive a margin call we need to calculate the equity in your short ...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
