Question: Initial margin requirement = 0.50 Maintenance margin requirement = 0.30 On March 11, you shorted 1,000 shares of Twitter at $30.13 a share. If the

Initial margin requirement = 0.50 Maintenance margin requirement = 0.30

On March 11, you shorted 1,000 shares of Twitter at $30.13 a share.

If the stock rises to $5 above the highest it can go without a margin call,

1.) what is your actual margin?

2.) What is the amount of your margin call?

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!

Q:

Initial margin requirement = 0.50 Maintenance margin requirement = 0.30 On March 11, you shorted 1,000 shares of Twitter at $30.13 a share. 1. What was your initial margin requirement? 2. If you...

Q:

Initial margin requirement = 0.50 Maintenance margin requirement = 0.30 On March 11, you shorted 1,000 shares of Twitter at $30.13 a share. You didnt close out the short, the price increases, you get...

Q:

Initial margin requirement 0 . 5 0 Maintenance margin requirement 0 . 3 0 Shares 1 , 0 0 0 You shorted AMC at $ 4 0 . 8 8 a share on August 1 8 , 2 0 2 3 . You closed out the short at $ 1 1 . 0 7 on...

Q:

Initial margin requirement 0 . 5 0 Maintenance margin requirement 0 . 3 0 Shares 1 , 0 0 0 You shorted AMC at $ 4 0 . 8 8 a share on August 1 8 , 2 0 2 3 . You closed out the short at $ 1 1 . 0 7 on...

Q:

DERIVATIVES QUESTION 3 (17.5 Marks) Asempa Ltd stock has a bid price of GH40.95 and an ask price of GH41.05. Assume there is a GH20 brokerage commission. 1. What amount will you pay to buy 100...

Q:

CORRECTLY ANSWERSED You and your team work for an educational institution that has 5 campuses and over 40,000 students. Since March 2020, all campuses were closed due to COVID-19 virus presence in...

Q:

market and briefly discuss the characteristics of a good market.\ Define liquidity and discuss the factors that contribute to it. Give examples of a liquid asset and an illiquid asset, and discuss...

Q:

These lictures should be better Marlene Belamy purchased 200 shares of Writine Communication steek at SSE 99 per share wing the prevailing minimum initial margin requirement of sex. She held the...

Q:

You are buying 100 shares of Zoom Video Communications, Inc. at the market price of $500 per share. You have $30,000 of your own money and borrows the rest of money for the purchase of the stock. The...

Q:

You are buying 100 shares of Zoom Video Communications, Inc. at the market price of $500 per share. You have $30,000 of your own money and borrows the rest of money for the purchase of the stock. The...

Q:

How can a company optimize its supply chain to reduce lead times and increase efficiency, while also reducing costs and maintaining high levels of quality?

Q:

A particle is in the normalised state 142 which is in the superposition of energy eigen states | E = loev> & | E = 30 e1'>. The avery value the energy of the particle in the stal TR= i.e. =...

Q:

The heat loss through the windows of a home is estimated to cost the homeowner $ 4 7 9 per year in wasted energy. Thermal windows will reduce heat loss by 9 5 % and can be installed for $ 1 7 0 9 ....

Q:

Please answer .. Knowing that the last 3 digits are 235 Part A (1.5): 1. Write the last 3 digits of your civil ID as Decimal number. 2. Convert the decimal to binary 3. Convert the binary to octal 4....