Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On Jan 1, you sold short 400 shares of Microsoft at $50 per share. You post $10000 to the margin account. On April 1, you
On Jan 1, you sold short 400 shares of Microsoft at $50 per share. You post $10000 to the margin account. On April 1, you received a margin call on this trade. Assume the minimum margin requirement is 25% and you receive a margin call.
What amount must you top-up to restore to a 50% margin?
A)$3000
B)$4000
C)$5000
D)$6000
E)None of the above
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