Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what effect does maitenance margin have You short sell 100 shares at $50/ share. Your initial margin was 50%. Assuming a 30% maintenance margin, what

what effect does maitenance margin have
image text in transcribed
You short sell 100 shares at $50/ share. Your initial margin was 50%. Assuming a 30% maintenance margin, what is the price at which a margin call will occur? $45.06 $107,14 $35.71 $57.69

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Broadcasting Finance In Transition

Authors: Jay G. Blumler, T. J. Nossiter

1st Edition

0195050894, 978-0195050899

More Books

Students also viewed these Finance questions