Question
On Jun 16th, 2022, You sold short 2,100 shares of AAPL's stock at $130 per share. You put 50% cash as the initial margin into
On Jun 16th, 2022, You sold short 2,100 shares of AAPL's stock at $130 per share. You put 50% cash as the initial margin into the short-selling account.
On Sep 16th, 2022, AAPL's price goes up to $150 per share.
- If you close this position, then your return would be ___________%. [ Close]
- If you maintain this position wait for AAPL to drop later. Then, your broker will ask you to put additional $_________ cash to keep the maintenance margin at 40%. [ Wait]
- What factors should investors consider to decide this "Close or Wait" decision?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the return if you close the position on Sep 16th 2022 1 Initial short sale proceeds 210...
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Step: 2
Step: 3
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
