You believe that Thorn Enterprises stock is going to fall, so you have decided to short sell

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You believe that Thorn Enterprises stock is going to fall, so you have decided to short sell 1,000 shares at a price of $32. Assuming the initial margin requirement is 50 percent, construct the equity account balance sheet for this trade. If the maintenance margin is 30 percent, at what price would a margin call result?

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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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