Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last week, Matt shorted 200 shares of Pirate stock at $20 per share at an initial margin of 80 percent in his new account; the

image text in transcribed

Last week, Matt shorted 200 shares of Pirate stock at $20 per share at an initial margin of 80 percent in his new account; the stock has since increased and closed at $25 per share today. Assuming Matt has no other positions and has added no other cash other than his initial margin requirement, what is his margin (%) level after the price increase? (OMIT any %-signs or $-signs in your answer, i.e., if you get $10.00 or 12.3%, simply enter "10.00" or "12.3" as your answer.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Liquidity Risk Management In Banks Economic And Regulatory Issues

Authors: Roberto Ruozi, Pierpaolo Ferrari

1st Edition

3642295800, 978-3642295805

More Books

Students also viewed these Finance questions

Question

Understand the different approaches to job design. page 184

Answered: 1 week ago