Question
You sell short 100 shares of the QQP stock at $70 per share. Assume your broker requires an initial margin of 60% and a maintenance
You sell short 100 shares of the QQP stock at $70 per share. Assume your broker requires an initial margin of 60% and a maintenance margin of 25%. If the stock price increases above a certain level, P,the percentage margin would drop below the maintenance margin of 25% and you will get a margin call. What is P?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
