Question: Homework 30 Saved Help Save & Exit Submit Check my work You are bearish on Telecom and decide to sell short 190 shares at the

 Homework 30 Saved Help Save & Exit Submit Check my work

Homework 30 Saved Help Save & Exit Submit Check my work You are bearish on Telecom and decide to sell short 190 shares at the current market price of $75 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole number.) points Skipped Cash or securities to be put into brokerage account eBook b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.) Print Margin call will be made at price or higher References

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!