Question: Short-selling. For each problem, determine whether there will be a margin call if the price goes up $10. For each problem, determine the price limit
Short-selling. For each problem, determine whether there will be a margin call if the price goes up $10. For each problem, determine the price limit that triggers a call.
4) Price = $65
Shares = 450
Initial margin = 40%
Maintenance margin = 35% or .35
5) Price = $80
Shares = 725
Initial margin = 55%
Maintenance margin = 45% or .45
6) Price = $75
Shares = 500
Initial margin = 50%
Maintenance margin = 40% or .4
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