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You are bearish on ABC stock and to sell short 2000 shares and the current market price is RM70. Maintenance margib is 35% and the
You are bearish on ABC stock and to sell short 2000 shares and the current market price is RM70. Maintenance margib is 35% and the requirement of initial margin is 50%. Dividend is RM1.50 per share. a) If the stock price increase by RM10 after a month, what is the rate of return? b) If the stock price falls by 30% from beginning, what is the rate return? c) At what price, the trader will receive a margin call?
a) If the stock price increase by RM10 after a month, what is the rate of return?
b) If the stock price falls by 30% from beginning, what is the rate return?
c) At what price, the trader will receive a margin call?
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