Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The stock of Flop Industries is trading at $45. You feel the stock price will decline, so you short 800 shares at an initial margin
The stock of Flop Industries is trading at $45. You feel the stock price will decline, so you short 800 shares at an initial margin of 75 percent. If the maintenance margin is 25 percent, at what share price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
Margin call price | $ |
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