Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On Sep 1 9 th , you sold short 5 , 2 0 0 shares of AAPL's stock at $ 1 5 6 per share.

On Sep 19th, you sold short 5,200 shares of AAPL's stock at $156 per share. Your initial margin requirement is 50 percent. Assuming there was no commission and interest fees and no dividends involved. After two weeks, AAPL's price went up to $190 per share, and you received a margin call from the broker.
If you close this position, then your return would be

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

Risk Sharing Finance

Authors: Bakkali Mirakhor, Saad Abbas

1st Edition

3110590468, 978-3110590463

More Books

Students also viewed these Finance questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago