Question
You have tresury bill amounting to 65000 in your accountyou want to short sell 1000 at 1.25 per share of company B.Supposed the broker has
You have tresury bill amounting to 65000 in your accountyou want to short sell 1000 at 1.25 per share of company B.Supposed the broker has 50% initial margin.Create balance sheet and compute your margin . Assume that the price per share of company B. falls by 25%create balance sheet and your margin if you cover your short . supposed the price of the share is to increased by 62% from the fall. Create balance sheet and compute your margin.Supposed the price of the share is to increased by 62% by the fall. Will you receive amargin call if the maintenance margin by the broker is 45%?Compute forthe critical price!
This is my assignment to day and i don't know what format of answer and solution should i make can anyone help me?
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