You are bearish on Telecom and decide to sell short 210 shares at the current market...
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You are bearish on Telecom and decide to sell short 210 shares at the current market price of $80 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole dollar.) Cash or securities to be put into brokerage account $ 8,400 b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.) Margin call will be made at price $ 92.31 or higher You are bearish on Telecom and decide to sell short 210 shares at the current market price of $80 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole dollar.) Cash or securities to be put into brokerage account $ 8,400 b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.) Margin call will be made at price $ 92.31 or higher
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