Question
1. Suppose that a short selling has a 50% initial margin and 30% maintenance margin. With a margin of $30,000 and a stock price of
1. Suppose that a short selling has a 50% initial margin and 30% maintenance margin. With a margin of $30,000 and a stock price of $100 one can sell short 600 shares. How much can the stock price rise before there is a margin call?
A. $115.38
B. $150
C. $105
D. $120
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The Global Financial Crisis What Have We Learnt
Authors: Steven Kates
1st Edition
0857934228, 978-0857934222
