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You has a margin account with $ 1 0 0 , 0 0 0 and would like to trade AAPL stock. The initial margin requirement
You has a margin account with $ and would like to trade AAPL stock. The initial margin requirement is and the maintenance margin is The current market price of AAPL is $
a You believe that AAPL is undervalued and would like to take a long position. Whats the maximum number of shares you can buy? What price can AAPL fall before you will receive a margin call?
b You believe that AAPL is overvalued and would like to take a short position. Whats the maximum number of shares you can sell short? What price can AAPL increase before you will receive a margin call?
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