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A. $4,500 52) You sold short 300 shares of common stock at $30 per share. The initial margin is 50%. What is your maximum possible
A. $4,500 52) You sold short 300 shares of common stock at $30 per share. The initial margin is 50%. What is your maximum possible loss? A. $4,500 B. $6,000 C. $9,000 D. Unlimited 53) You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call? (CFA Question) A. $28.85 B. $35.71 C. $31.50 D. $32.25 54) Which of the following is a tool that can be used to earn positive profits in a bull market? (CFA Question) A. put options C. short sell B. a short position in futures D. buy on margin price is the price at which a dealer is willing to purchase a security. (CFA Ques B. ask 55) The A. bid C. clearing D. settlement 56) Suppose you have three October futures contracts (short position) of copper at price of $4.45 pe pound. The contract calls for delivery of 25,000 lbs. If the contract closes in October at price of $4.42 per pound, what would be the profit or loss of your position? A. $2,250 B. -$2,250 C. $111,250 D.-$110,500
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