Question
Suppose we short 100 shares of a stock at $50 a share. If the initial margin is 50% and the maintenance is 30%, do the
Suppose we short 100 shares of a stock at $50 a share. If the initial margin is 50% and the maintenance is 30%, do the following calculation:
1. Calculate the margin of the short sale, when the price is at $50, $70 and $30.
2. Determine whether the investor will receive a margin call or not.
3. In the case of a margin call, how much money the investor needs to put in
his account to continue to hold his position.
Suppose we short 100 shares of a stock at $50 a share. If the initial margin is 50% and the maintenance is 30%, do the following calculation:
1. Calculate the margin of the short sale, when the price is at $50, $70 and $30.
2. Determine whether the investor will receive a margin call or not.
3. In the case of a margin call, how much money the investor needs to put in
his account to continue to hold his position.
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Trade Union Finance
Authors: Marick F. Masters, Raymond Gibney
1st Edition
1032371382, 978-1032371382
