Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You just shorted 800 shares of stock A at $50 per share, hoping that the price will fall in the near future. Your broker requires

image text in transcribed

You just shorted 800 shares of stock A at $50 per share, hoping that the price will fall in the near future. Your broker requires 40% initial margin on short sale. How much cash do you have to deposit in your brokerage account? a) $32,000 b) $34.000 c) $16,000 d) $40,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trade Union Finance

Authors: Marick F. Masters, Raymond Gibney

1st Edition

1032371382, 978-1032371382

More Books

Students also viewed these Finance questions

Question

3. Outline the four major approaches to informative speeches

Answered: 1 week ago

Question

4. Employ strategies to make your audience hungry for information

Answered: 1 week ago