Question
Alex takes a shoet position ok Microsoft stock at $1000 per share. he sells 100 shares short at $1000 per share. The short sale has
Alex takes a shoet position ok Microsoft stock at $1000 per share. he sells 100 shares short at $1000 per share. The short sale has an IMR equals to 50% and MMR equals to 30%.
1- How much does Alex have to deposit in his account after taking the short position?
2- At what price would Alex double the valueof hus investment?
3- By what % would the price have to rise for Alex to be subject to a margin call?
Step by Step Solution
3.32 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
1 How much does Alex have to deposit in his ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Taxes And Business Strategy A Planning Approach
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
5th Edition
132752670, 978-0132752671
