You short sell 20 shares of a stock which is currently traded for 100 dollars. The...

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You short sell 20 shares of a stock which is currently traded for 100 dollars. The maintenance margin is 30%. Three days later, the stock price hits 130 dollars, and you immediately receive a margin call. What is the initial margin requirement? You short sell 20 shares of a stock which is currently traded for 100 dollars. The maintenance margin is 30%. Three days later, the stock price hits 130 dollars, and you immediately receive a margin call. What is the initial margin requirement?

Answer rating: 100% (QA)

To calculate the initial margin requirement we need to determine the value of the shor... View the full answer