Question 34

(You must show your work by uploading a file (word or digital answer)

You decide to short 5000 shares of FB stock. The current price is $315 per share. The IMR is 60%.

a) At what price will you get a margin call if the MMR is 25%?

b) If the price goes to $343, what is your return?

c) What would your answers be for parts A and B if FB had paid a dividend of $3 per share during this period?