Question
An investor sold short 1000 shares of ABC $30 per share. The stock is eligible for reduced margin. Required: A. Calculate the margin required for
An investor sold short 1000 shares of ABC $30 per share. The stock is eligible for reduced margin.
Required:
A. Calculate the margin required for this opening short sale. Show all calculations for full marks with accurately labeled entries. (5 marks)
B. Assume that the price per share of ABC increases to $40. Calculate the revised margin requirement and the margin deficiency or excess.(5 marks)
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Management Accounting In A Dynamic Environment
Authors: Cheryl S McWatters, Jerold L Zimmerman
1st Edition
0415839025, 9780415839020
