Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are bearish on IT stock. The current market price is $ 1 0 0 per share, and you short sell 1 0 0 shares.

You are bearish on IT stock. The current market price is $100 per share, and you short sell 100 shares. How far does the price of IT stock have to increase for you to get a margin call if the maintenance margin is 30%? How much do you need to deposit in addition?

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

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

11th Global Edition

1292094184, 978-1292094182

More Books

Students also viewed these Finance questions