Question
4. Latticia sold short 300 shares of ChromoClock for $13,500. The initial margin requirement is 60 percent for her short sale. The maintenance margin is
4. Latticia sold short 300 shares of ChromoClock for $13,500. The initial margin requirement is 60 percent for her short sale. The maintenance margin is 40 percent.
a. Show Latticias balance sheet account positions for this trade.
A month later the company made an announcement of unexpected positive news. The stock price jumped this morning to $54.50 a share.
b. Show Latticias new balance sheet account positions with the release of the news.
c. At what price is Latticia going to get a margin call?
d. What is Felicias current margin position in this stock?
e. If she sells today what will be her HPR?
f. What is her EAR?
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
