Answered step by step
Verified Expert Solution
Link Copied!

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

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_2

Step: 3

blur-text-image_3

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

International Finance Theory And Policy

Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz

12th Global Edition

1292417005, 978-1292417004

More Books

Students also viewed these Finance questions

Question

6. Explain what causes unsafe acts.

Answered: 1 week ago