In our previous example (Example 2.6), at what price per share would you be subject to a

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In our previous example (Example 2.6), at what price per share would you be subject to a margin call?

Example 2.6

You shorted 5,000 shares of Layton Industries at a price of $30 per share. The initial margin is 50 percent, and the maintenance margin is 40 percent. What does your account balance sheet look like following the short?

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 29, 2023 10:27 PM

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In our previous example (Example 2.6), at what price per share would you be subject to a

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To answer this one let P be the critical price The short liability then is 5000 shares at a price of ...View the full answer

Fundamentals Of Investments Valuation And Management

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