Question: 6. The initial margin required by the broker is 40%. You short/sell 1000 shares of TSLA at $280 per share. If the maintenance margin is

6. The initial margin required by the broker is 40%. You short/sell 1000 shares of TSLA at $280 per share. If the maintenance margin is 30%, at what price will you receive a margin call?

A.461.54

B.865.68

C.1076.92

D.1103.25

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!

6. The initial margin required by the broker is 40%. You short/sell 1000 shares of TSLA at $280 per share. If the maintenance margin is 30%, at what price will you receive a margin call? A. 285.84 B....

(1-2) Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%. (The margin account pays 3% interest...

The initial margin required by the broker is 5 0 % . You short sell 5 0 0 shares of TSLA at $ 1 5 0 per share. If the maintenance margin is 3 0 % , at what price will you receive a margin call? A . 1...

Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%. (The margin account pays 3% interest rate.)...

Question 8-10. Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%. (The margin account pays no...

0 000 Jpear to violate! This does not violate any form of marketiciency Weak form market efficiency Semi-strong form market efficiency Strong form market efficiency 17 4 points What is the price of a...

you receive a margin call at time=1? [9-10] Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%....

[9-10] Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%. (The margin account pays no...

Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%. (The margin account pays no interest.) A...

show steps [9-10] Old Economy Traders opened an account to short sell 1,000 shares at the price per share of $40 of Internet Dreams. The initial margin requirement was 50%. (The margin account pays...

The overall distance traveled by a golf ball is tested by hitting the ball with Iron Byron, a mechanical golfer with a swing that is said to emulate the legendary champion, Byron Nelson. Ten randomly...

You are to get the income statement and a balance sheet of any company for two consecutive years (the years must follow each other). Based on the figures on the selected income statement and balance...

a Copy and complete the table of values for each two-step function machine. b Write each function in part a as an equation. x x 2 +3 x 172 01 3 4 y == 2 -3 8 10 15 19 y

QUESTION 2 [10 MARKS] (a) Based on the concept of asymmetric information, illustrate the difference between adverse selection and moral hazard. [4 marks] (6) What is the purpose of having the...