Question
You sell short 100 shares of GE at $22.50 per share on 80% initial margin. Your maintenance margin is 30%. Show all work a.) If
You sell short 100 shares of GE at $22.50 per share on 80% initial margin. Your maintenance margin is 30%.
Show all work
a.) If GE decreased to $20.00, what is your new margin percent?
b.) if GE increases to $25.00, what is the percentage change in your equity?
c.) What is the lowest price at which you would receive a margin call?
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Financial Ratio Analysis
Authors: Andrew P.C.
1st Edition
1973493381, 978-1973493389
