10. Margin Calls (LO4, CFA5) You deposit $100,000 cash in a brokerage account and short sell $200,000...

Question:

10. Margin Calls (LO4, CFA5) You deposit $100,000 cash in a brokerage account and short sell

$200,000 of stocks. Your broker requires a maintenance margin of 30 percent. Which of the following is the lowest value for the stocks you are holding short for which you will still receive a margin call?

a. $260,000

b. $240,000

c. $220,000

d. $200,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

Question Posted: