Question
Initial margin requirement = 0.50 Maintenance margin requirement = 0.30 On March 11, you shorted 1,000 shares of Twitter at $30.13 a share. You didnt
Initial margin requirement = 0.50 Maintenance margin requirement = 0.30
On March 11, you shorted 1,000 shares of Twitter at $30.13 a share.
You didnt close out the short, the price increases, you get a margin call and you are unable to meet it.
What is the maximum market value you can have given that your equity is fixed?
What is the difference between the current market value and the maximum market value?
How many shares will your broker buy?
After your broker buys the shares, what is the value of your loan?
After your broker buys the shares, what are your total assets?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started