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You are now bearish on Pharma and decide to sell short 200 shares at the current market price of $60 per share. a. How much
You are now bearish on Pharma and decide to sell short 200 shares at the current market price of $60 per share. a. How much in cash or securities must you put into your brokerage account if the brokers initial margin requirement is 50% of the value of the short position? 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?
You are now bearish on Pharma and decide to sell short 200 shares at the current market price of $60 per share.
a. How much in cash or securities must you put into your brokerage account if the brokers initial margin requirement is 50% of the value of the short position?
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?
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Handbook Of Heavy Tailed Distributions In Finance
Authors: S.T Rachev
1st Edition
0444508961, 9780444508966
