Suppose you are bearish on the Dot Bomb stock, and its market price is $100 per share. You tell your broker to sell short 1,000 shares. Suppose that the margin percent is 50% and the broker has a maintenance margin of 40% on short sales. How much can the price of Dot Bomb stock rise before you get a margin call?

Answer rating: 100% (QA)

To determine how much the price of Dot Bomb stock can rise before you receive a margin call we need ... View the full answer