You are bullish on ABC Co$.$ stock. You put up $$1800$ to buy $130$ shares on margin. The stock is at $$27$ per share. What is on the asset side of the initial t$-$account?

Question $9$Answer

a$.$

share value $3510\mathrm{.}00$

b$.$

loan $3510\mathrm{.}00$; equity $1800\mathrm{.}00$

c$.$

loan $1710\mathrm{.}00$; equity $1800\mathrm{.}00$

d$.$

proceeds $3510\mathrm{.}00$; margin cash $1800\mathrm{.}00$

e$.$

short position $3510\mathrm{.}00$; equity $1800\mathrm{.}00$