Question: Finance 4200 Class Problem Short Post Name Date: Suppose that an investor sells 400 shares short at $50 per share. The initial marginis 50% and
Finance 4200 Class Problem Short Post Name Date: Suppose that an investor sells 400 shares short at $50 per share. The initial marginis 50% and the maintenance margin is 10%. After 125 days, the investor purchase the shares for S40 and closes the short position. During the holding period, the shares para dividend of $2.50 per share. Show the calculations for the numbers that you enter in the accounts account a. Show the investor's beginning (cales here) b. At what price would the investor receive a margin call? c. Show the investor's "Taccount at the share price of $40. (cales, here) d. What is the actual margin at a share price of S202 e. Calculate the investor's return for the 125 day holding period
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