Intro Suppose you just bought the new Windoze 8 and that you realize that it is really bad. As a result you are sure that the price of Microsoft stock (currently trading for $37.13) is going to fall and you tell your broker to short 130 shares. Part 1 Attempt 1/10 for 10 pts. If the broker's initial margin is 50%, what is the value of personal assets you must add to your account to meet the margin requirement? 1745 Correct Equity: E = 0.5 * 130 * 37.13 = 2,413 Part 2 - Attempt 2/10 for 8 pts. Assume you have added to your account the value of personal assets determined in part 1. If the broker has a maintenance margin of 30%, what is the highest value the price of Microsoft stock can reach before you are issued a margin call? 1+ decimals Submit Intro You decide to sell short 200 shares at a price of $75.82 each. The initial margin requirement is 50%. Part 1 | Attempt 1/10 for 10 pts. How much money do you have to contribute to the account? 13363 Correct Assets Liabilities & Equity Sale proceeds (N*Po) 15,164 Value of borrowed shares (N*P) 15,164 Cash (50% of above) 7,582 Equity 7,582 Total 22,746 Total 22,746 You have to contribute $7,582. Part 2 - Attempt 2/10 for 8 pts. If the price rises to $88.11 after 9 months, what is the new percentage margin? B+ decimals Previous answers: 17.540 Submit