Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are bearish on Telecom and decide to sell short 190 shares at the current market price of $75 per share. a. How much in

image text in transcribed
You are bearish on Telecom and decide to sell short 190 shares at the current market price of $75 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Round your answer to the nearest whole number.) Cash or securities to be put into brokerage account $ 7,125 int ences b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.) Margin call will be made at price or higher

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

Fintech In Islamic Finance Theory And Practice

Authors: Umar A. Oseni, S. Nazim Ali

1st Edition

1138494801, 978-1138494800

More Books

Students also viewed these Finance questions

Question

When does a country become an exporter of a good? An importer?

Answered: 1 week ago

Question

2. Outline the functions of nonverbal communication

Answered: 1 week ago