Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor sold short 1 0 0 0 shares at $ 5 0 per share of a security eligible for reduced margin. The investor deposited

An investor sold short 1000 shares at $50 per share of a security eligible for reduced margin. The investor deposited $15,000 in margin. Subsequently, the shares declined to $45. Calculate the investor's margin position after the decline.
$8,500 deficiency
$8,500 excess
$6,500 deficiency
$6,500 excess

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

Futures Trading Demystified

Authors: Arvind Rajpurohit

1st Edition

979-8859974344

More Books

Students also viewed these Finance questions

Question

Define shipment and delivery terms.

Answered: 1 week ago

Question

What is Tax Planning?

Answered: 1 week ago