You sell 100 shares of Norton Corporation short. The price of the stock is $60 per share.
Question:
a. How much is your initial margin?
b. If stock goes down to $42, what is your percentage gain or loss on the initial margin (equity)?
c. If stock goes up to $67.50, what is your percentage gain or loss on the initial margin (equity)?
d. In part c, if the minimum margin standard is 30 percent, will you be required to put up more margin? (Do the additional necessary calculations to answer this question.) Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamentals of Investment Management
ISBN: 978-0078034626
10th edition
Authors: Geoffrey Hirt, Stanley Block
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