Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor short sella 100 shares of a stock for $20.65 per share. The initial margin is 51%, and the maintenance margin is 28%. The

image text in transcribed
An investor short sella 100 shares of a stock for $20.65 per share. The initial margin is 51%, and the maintenance margin is 28%. The price of the stock falls to $14.03 per share. What is the margin, and will there be a margin call? The margin in the account is OS (Round to the nearest percent.) Because the current marginis the maintenance margin, there be a margin call. (Select from the drop-down menus.) An investor short sella 100 shares of a stock for $20.65 per share. The initial margin is 51%, and the maintenance margin is 28%. The price of the stock falls to $14.03 per share. What is the margin, and will there be a margin call? The margin in the account is OS (Round to the nearest percent.) Because the current marginis the maintenance margin, there be a margin call. (Select from the drop-down menus.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Numerical Methods In Finance

Authors: René Carmona, Pierre Del Moral, Peng Hu, Nadia Oudjane

2012th Edition

3642257453, 978-3642257452

More Books

Students also viewed these Finance questions

Question

What type of lawmaking action is involved?

Answered: 1 week ago

Question

a. How do you think these stereotypes developed?

Answered: 1 week ago

Question

7. Describe phases of multicultural identity development.

Answered: 1 week ago