Assume an investor shorted 1,000 shares of Company Y at $15.50 using a 50% margin. Following...

 

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Assume an investor shorted 1,000 shares of Company Y at $15.50 using a 50% margin. Following a sharp rise in the stock to $21.70, the investor has received a maintenance margin call. At this point, the investor is required to wire sufficient funds to bring account equity back to 50%. This information is summarized in the following table: Price $15.50 Shares Initial Margin 1,000 50% Additional funds in the amount of $ 3100 New Price $21.70 How much in additional funds must be added to the account to bring account equity back to 50%? must be added to the account. Round your answer to the nearest cent. Assume an investor shorted 1,000 shares of Company Y at $15.50 using a 50% margin. Following a sharp rise in the stock to $21.70, the investor has received a maintenance margin call. At this point, the investor is required to wire sufficient funds to bring account equity back to 50%. This information is summarized in the following table: Price $15.50 Shares Initial Margin 1,000 50% Additional funds in the amount of $ 3100 New Price $21.70 How much in additional funds must be added to the account to bring account equity back to 50%? must be added to the account. Round your answer to the nearest cent.

Answer rating: 100% (QA)

No of shares1000 price of share1550 The initial sale proceed155010015500 50 marg... View the full answer