Question: You are bearish on BCE stock and decide to sell

You are bearish on BCE stock and decide to sell short 100 shares at the current market price of $ 50 per share.
a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50 percent of the value of the short position?
b. How high can the price of the stock go before you get a margin call if the minimum margin is 30 percent of the value of the short position?

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  • CreatedJune 21, 2015
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