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Suppose you are bearish on the Dot Bomb stock, and its market price is $100 per share. You tell your broker to sell short 1,000
Suppose you are bearish on the Dot Bomb stock, and its market price is $100 per share. You tell your broker to sell short 1,000 shares. Suppose that the margin percent is 50% and the broker has a maintenance margin of 40% on short sales. How much can the price of Dot Bomb stock rise before you get a margin call?
Select one :
a. $57.14
b. $ 107.14
C.$115.38
d. $61.23
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