You are very hopeful that the Apple stock price will fall in near future. You plan to
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Question:
You are very hopeful that the Apple stock price will fall in near future. You plan to do some short selling. Assume that you sold short 100 shares of Apple stock at $50 per share. While you wait for the price to go down, Apple announced a new product and the share price started to go up. Your hope to make money via short selling started to fade away.Your initial margin was 60%.
What would be the maintenance margin if a margin call is made at a stock price of $60?
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Managerial Economics and Organizational Architecture
ISBN: 978-0073523149
6th edition
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
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