Intro

You sell 380 shares of stock short at a price of $44.75. The initial margin requirement is 50% and the maintenance margin is 30%.

Attempt 1/10 for 10 pts.

Part 1

How much money do you have to add to the account to meet the inital margin requirement?

Correct

Cash deposit:

C=Value of stocksInitial marginC=Value of stocksInitial margin

= 38044.750.538044.750.5

= 8,503

Attempt 4/10 for 10 pts.

Part 2

At what price will you first receive a margin call?