On March 15, 2021 you sell short 7,200 shares of EJP at stock price of $88.44.

a. Immediately after opening this account, what is the total value that is in the account?

b. Where does that total value come from (be specific)?

c. At what EJP stock price will you get a margin call?

d. Suppose the stock price rises slowly through March and April to close at $99.55 on May 4. On May 5 the price jumps significantly to close at $114.27. How much is your margin call, and how much equity do you have in your trading account after making it?

Answer rating: 100% (QA)

a Immediately after opening this account the account value is negati... View the full answer