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Please show all the calculations Problem 2 (4 pts) Suppose that you want to sell short 500 shares of stock XYZ. XYZ stock is currently
Please show all the calculations
Problem 2 (4 pts) Suppose that you want to sell short 500 shares of stock XYZ. XYZ stock is currently selling for $120. Broker A has a 32% initial margin requirement whereas broker B wants you to deposit $25,000 to satisfy the margin requirement. a. How much cash or cash equivalent, do you have to deposit if you decide to do short sale with broker A ? (2pt) b. If you are to do the short sale with broker B, what would be broker B initial margin requirement? (2pt)Step by Step Solution
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