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Initial margin requirement 0 . 5 0 Maintenance margin requirement 0 . 3 0 Shares 1 , 0 0 0 You shorted AMC at $
Initial margin requirement
Maintenance margin requirement
Shares
You shorted AMC at $ a share on August You closed out the short at $ on August
How much did you have to have in your account before you shorted the stock?
What was your net cash inflow after you closed out the short?
What was your return on this short?
Assuming you don't close out the short, how high can the stock go before you get a margin call?
The stock price increases to $ a share.
What is the amount of your margin call?
The stock price increases to $ a share.
What is the amount of your margin call?
If you meet the margin call, what was your new equity?
If you can't meet the margin call, what is the maximum market value you have?
What is the reduction needed?
How many shares will your broker buy?
What is the actual reduction?
What are your new total assets?
What is your new loan?
The stock price increases to $ a share.
What is your equity?
What is your margin call?
If you can't meet the margin call, how many shares will your broker buy?
What will the amount of your remaining loan?
What will be your new total assets?
Type your answers in the boxes below.
Initial margin requirement
Net cash inflow
Return
How high can it go
Amount of margin call
Amount of margin call
New equity
Maximum value
Reduction needed
Number of shares
Actual reduction
New total assets
New loan
table$
Only needed
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