Question: Additional Problem 3-5 Suppose that you just short sold 100 shares of Quiet Minds stock for $97.00 per share a. If the initial margin requirement

 Additional Problem 3-5 Suppose that you just short sold 100 shares

Additional Problem 3-5 Suppose that you just short sold 100 shares of Quiet Minds stock for $97.00 per share a. If the initial margin requirement is 75%, how much equity must you invest? (Round your answer to the nearest dollar) Equity b. Construct the balance sheet that corresponds to the transaction Stock T-bills Total assets s Short position (100 shares) Equity Total liabilities and equity e. Now suppose the price of the stock falls to s89 per share wnat is your current margin percentage? (Round your answer to 2 decimal places ) Margin percentage d. The maintenance margin is 50%. What is the lowest pnce that will trigger a margin ca ? (Round your answer to 2 decimal places.) Stock price

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!