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Suppose that you sell short 1000 shares of MSFT, currently selling for $50 per share, and give your broker $30,000 to establish your margin account.
Suppose that you sell short 1000 shares of MSFT, currently selling for $50 per share, and give your broker $30,000 to establish your margin account. The maintenance margin is 35% a. If the price of MSFT immediately changes to $55, do you receive a margin call? Explain. b. If the maintenance margin is 35%, how high can MSFT's price rise before you get a margin call
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