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Course : Investmant Managment I need the answers step by step Suppose you sell short 300 shares of stock initially selling for $40 a share.
Course : Investmant Managment
Suppose you sell short 300 shares of stock initially selling for $40 a share. Your initial margin requirement is 50% of the value of the stock sold. The stock pays $2 dividend per share at year-end. How much do you need to contribute to your margin account (in dollars) at t=0 ? What will be your rate of return at the end of the year holding period if the price is $30 per share? If the maintenance margin is 30%, at what stock price you will receive a margin call I need the answers step by step
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