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Intro The stock price of Tesla is $ 5 7 5 . Your broker charges a rate of 0 . 6 % on borrowed shares.
Intro
The stock price of Tesla is $ Your broker charges a rate of on borrowed shares.
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Part
You think the stock price will go down soon, and want to short shares. If the initial margin is what is the minimum additional dollar amount that you have to deposit from your own funds to your brokerage account?
Correct
Shortselling shares gives us some cash, which must be kept in the brokerage account:
Proceeds from shortselling Number of shares Stock price
With an initial margin requirement of we have to add of the proceeds from shortselling in the form of additional cash to the account:
Extra cash
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Part
Three months later, the stock price is $ Tesla paid a dividend of $ per share during the three months you were short. What is your percentage margin entered as a decimal number at the end of three months?
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