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Suppose you sell short 2 0 0 shares initially trading for $ 5 0 per share. Your initial margin requirement is 5 0 % of
Suppose you sell short shares initially trading for $ per share. Your initial margin requirement is of the value of the short positions. You receive no interest for the funds placed in your margin account. How much do you need to contribute to your margin account? After year, what will be your rate of the return considering the following stock prices? $ $ $ How high can the price of the stock go before you get a margin call if the maintenance margin is of the value of the short position?
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