You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks. Your broker requires
Question:
You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks. Your broker requires a maintenance margin of 30 percent. Which of the following is the lowest value for the stocks you are holding short for which you will still receive a margin call?
a. $260,000
b. $240,000
c. $220,000
d. $200,000.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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