Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You short sell 2,500 shares of common stock at $11.00 per share. The initial margin is 50% and the maintenance margin is 30%. What is

You short sell 2,500 shares of common stock at $11.00 per share. The initial margin is 50% and the maintenance margin is 30%. What is the stock price that triggers the margin call? (2 points) a) $7.70 b) $12.69 c) $14.30 d) $22.00

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

Top Actuel Fiscalité 2022-2023

Authors: Daniel Freiss,Brigitte Monnet

1st Edition

2017182176,2017879282

More Books

Students also viewed these Finance questions