The current price of Cornersville Coffins Inc. (CCI) is 91.25. You think CCI is probably a dead-end investment (i.e. you are bearish on CCI) and have decided to short 500 shares. The initial margin is 55% and the maintenance margin is 35%.  


A  How high can the price increase before you will receive a margin call?

B. If the price rises to $110, what will be the amount of the margin call?

Answer rating: 100% (QA)

To determine the margin call thresholds we need to calculate the initial margin requirement and the ... View the full answer