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You are expecting Nike stock price to decrease during the next year. The stock is trading now at $20 per share and you have just
You are expecting Nike stock price to decrease during the next year. The stock is trading now at $20 per share and you have just sold 100 shares using the short sell technique. One year after you entered this short position, Nike stock price increased to $23 per share. Regularly, Nike pays $2 per share as dividend at the end of the year. FOREX Trading Company, the broker you deal with, sets the following margin requirements: Margin Requirement rates Initial 50% Maintenance 30% 4. If you want to cover your losses and maintain you position open, how much additional money do you need to deposit in order to get back to the maintenance margin level? TI
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