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6. You have decided to short 125 shares of Shake Shack, which is currently trading for $160 per share. Assume your account already has $50,000
6. You have decided to short 125 shares of Shake Shack, which is currently trading for $160 per share. Assume your account already has $50,000 in t-bills which you can use as collateral. For short sales, your broker requires an initial margin of 50% and a maintenance margin of 30% and you must also set aside 100% of the cash proceeds as collateral. By how much could the stock price increase before you receive a margin call?
$202.73
$161.25
$176.92
$184.62
$192.45
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