You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on margin. Later,
Question:
You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on margin. Later, the value of the stocks held short rises to $250,000. What is your account margin in percent?
a. 20 percent
b. 25 percent
c. 33 percent
d. 50 percent.
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To calculate the account margin in percent we can use the formula Margin Val...View the full answer
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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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