Question: 34. Short selling requires initial equity 60% and minimum equity 30%. You short sell 1,000 shares of stock at $10 each at 3p.m. on Monday.

34. Short selling requires initial equity 60% and minimum equity 30%. You short sell 1,000 shares of stock at $10 each at 3p.m. on Monday. By Tuesday noon the stock price is $10.50. Which statement is correct?

a) Your account is restricted. Your equity is 10%. b) Your account is restricted. Your equity is 52.4%. c) Your account is unrestricted. Your equity is 46.2%. d) Your account is unrestricted. Your equity is 77.8%.

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