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You purchased 250 shares of common stock on margin for $50 per share. The initial margin is 65% and the stock pays no dividend. Your
You purchased 250 shares of common stock on margin for $50 per share. The initial margin is 65% and the stock pays no dividend. Your rate of return would be how much if you sell the stock at $35 per share. Ignore interest on margin.
You sell short 100 shares of company A which are currently selling at $47 per share. You post the 50% margin required on the short sale. If your broker requires a 40% maintenance margin, at what stock price will you get a margin call?
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