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Part 1 Attempt 1/5 for 10 pts. You think the stock price will go down soon, and want to short 63 shares. If the initial
Part 1 Attempt 1/5 for 10 pts. You think the stock price will go down soon, and want to short 63 shares. If the initial margin is 50%, what is the minimum additional dollar amount that you have to deposit from your own funds to your brokerage account? 20002.5 Correct Short-selling 63 shares gives us some cash, which must be kept in the brokerage account: Proceeds from short-selling = Number of shares * Stock price = 63 * 635 = 40,005 With an initial margin requirement of 50%, we have to add 50% of the proceeds from short-selling in the form of additional cash to the account: Extra cash = 50% * 40,005 = 20,003 Part 2 Attempt 1/5 for 10 pts. Three months later, the stock price is $662. Tesla paid a dividend of $7 per share during the three months you were short. What is your percentage margin (entered as a decimal number) at the end of three months? 3+ decimals Submit
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