Alex takes a shoet position ok Microsoft stock at $1000 per share. he sells 100 shares short
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Question:
Alex takes a shoet position ok Microsoft stock at $1000 per share. he sells 100 shares short at $1000 per share. The short sale has an IMR equals to 50% and MMR equals to 30%.
1- How much does Alex have to deposit in his account after taking the short position?
2- At what price would Alex double the valueof hus investment?
3- By what % would the price have to rise for Alex to be subject to a margin call?
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ISBN: 9780132752671
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Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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