Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Intro You decide to sell short 390 shares at a price of $77.16 each. The inital margin is 50%. For this question, assume that the
Intro You decide to sell short 390 shares at a price of $77.16 each. The inital margin is 50%. For this question, assume that the lending rate associated with the borrowed shares is 0% and that your cash earns no interest when held by your broker. Part 1 Attempt 1/5 for 10 pts. How much of your own money do you have to contribute to the account, ? 0+ decimals Submit Part 2 | Attempt 1/5 for 10 pts. If the price rises to $89.37 after 3 months, what is your new margin ratio (expressed as a decimal)? 3+ decimals Submit
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