Question
Jade short sells 1000 XYZ shares at the price of $20 per share. With an initial margin requirement of 40%, Jade needs to: a. Borrow
Jade short sells 1000 XYZ shares at the price of $20 per share. With an initial margin requirement of 40%, Jade needs to:
a. Borrow 20,000 from the broker to buy shares.
b. Deposit 8,000 cash to meet initial margin requirement.
c. Borrow 80,000 from the broker to buy shares.
d. Borrow shares and sell them when share price rises.
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
