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Question 5 (5 Marks) You are bearish on Bel Air stock and decide to sell short 100 shares at the current market price of $100
Question 5 (5 Marks) You are bearish on Bel Air stock and decide to sell short 100 shares at the current market price of $100 per share. a. How much in cash or securities must you put into your margin account if the broker's initial margin requirement is 50% of the value of the short position? Show all your calculations. 2 marks b. How high can the price of the stock Bel Air ago before you get a margin call if the maintenance margin is 30% of the value of the short position? Show all your calculations. 3 marks
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