Question
You have $15,000 in your margin account (50% initial margin, 35% maintenance margin, interest rate on loans is 8% per year) and decide to use
You have $15,000 in your margin account (50% initial margin, 35% maintenance margin, interest rate on loans is 8% per year) and decide to use the full amount to short a stock which is currently trading at $30/share. 3 months later the stock pays a dividend of 75 cents/share and is trading at %35 per share.
A) Claculate your ROI?
B) At what price per share will a margin call be issued?
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Extinction Governance Finance And Accounting
Authors: Jill Atkins, Martina Macpherson
1st Edition
0367492989, 978-0367492984
