Question: 0.30 Shares Maintenance margin req. 0.50 1,000 Initial margin req. On October 21, 2021, I shorted Intel at $56.00 a share. I closed out the

 0.30 Shares Maintenance margin req. 0.50 1,000 Initial margin req. On

0.30 Shares Maintenance margin req. 0.50 1,000 Initial margin req. On October 21, 2021, I shorted Intel at $56.00 a share. I closed out the short on October 27, 2021, at $48.00 a share. 1. What was my intial margin requirement? 2. What did my balance sheet look like immediately after I shorted the stock? 3. What was my net cash inflow after I closed out the short? 4. What was my return after I closed out the short? 5. How high could the price go without me getting a margin call

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!