a. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000 and borrow the rest. What would your account balance sheet look like? What is your margin?

b. Supposed that you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like?

Answer rating: 100% (QA)

A C D 1 Amount of shares bought 10000 30 300000 Amount borrowed 300... View the full answer