Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose that you just short sold 100 shares of Quiet Minds stock for $80.00 per share. Required: a. If the initial margin requirement is 80%,
Suppose that you just short sold 100 shares of Quiet Minds stock for $80.00 per share. Required: a. If the initial margin requirement is 80%, how much equity must you invest? (Round your answer to the nearest dollar) Answer is complete and correct. Equity b. Construct the balance sheet that corresponds to the transaction described in requirement a. c. Now suppose the price of the stock falls to $72 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. d. The maintenance margin is 30%. At what stock price would you get a margin call? (Round your answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started