Question: To cover the initial margin requirement of 60 percent you

To cover the initial margin requirement of 60 percent, you deposited funds after short- selling 100 shares of common stock at $ 45 per share.
a. What is your rate of return if you cover at $ 50, assuming no dividends and no addition or removal of funds from the account?
b. At what price would you receive a margin call if the minimum margin requirement is 30 percent?

View Solution:


Sale on SolutionInn
Sales0
Views75
Comments
  • CreatedJune 21, 2015
  • Files Included
Post your question
5000