You are bearish on Telecom and decide to sell short 250 shares at the current market...
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You are bearish on Telecom and decide to sell short 250 shares at the current market price of $90 per share. Required: 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? 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? Complete this question by entering your answers in the tabs below. Required A Required B 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? Note: Round your answer to the nearest whole dollar. Cash or securities to be put into brokerage account < Required A $ 10 Required B > You are bearish on Telecom and decide to sell short 250 shares at the current market price of $90 per share. Required: 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? 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? Complete this question by entering your answers in the tabs below. Required A Required 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? Note: Round your answer to 2 decimal places. Margin call will be made at price or higher < Required A Required B > You are bearish on Telecom and decide to sell short 250 shares at the current market price of $90 per share. Required: 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? 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? Complete this question by entering your answers in the tabs below. Required A Required B 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? Note: Round your answer to the nearest whole dollar. Cash or securities to be put into brokerage account < Required A $ 10 Required B > You are bearish on Telecom and decide to sell short 250 shares at the current market price of $90 per share. Required: 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? 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? Complete this question by entering your answers in the tabs below. Required A Required 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? Note: Round your answer to 2 decimal places. Margin call will be made at price or higher < Required A Required B >
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a To determine how much cash or securities you must put into your brokerage account for a short sale ... View the full answer
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