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Assume that your brokerage company requiresharoinitial margin of 55% and a maintenance margin of 30%. Assume further that you short 1,200 shares of Madoka Corp.
Assume that your brokerage company requiresharoinitial margin of 55% and a maintenance margin of 30%. Assume further that you short 1,200 shares of Madoka Corp. at $85 per share. Calculate the minimum amount of cash you must deposit to be able to make this sale. a. b. Calculate the price above which you will receive a margin call. c. Show what the account balance sheet would look like if the stock reaches the price in "b". above
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