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You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the short sale.
You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the short sale. Your broker requires a 30% maintenance margin. Assume you earn no interest on the funds and ignore any dividends. If you earn no interest on the funds in your margin account, what is the (lowest) stock price of Microsoft that will trigger a margin call? (Ignore any dividends)
A. | $31.69 | |
B. | $36.22 | |
C. | $33.10 | |
D. | $37.81 | |
E. | $34.62 |
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