Question
You short sold 1000 shares at $15 per share. Initial margin on your account is 60% and maintenance margin is 30%. Ignoring commission and interest
You short sold 1000 shares at $15 per share. Initial margin on your account is 60% and maintenance margin is 30%. Ignoring commission and interest answer the following questions:
a. What is the amount which you have to deposit I your brokerage account? (5 points)
b. What is the balance of your brokerage account? (5 points)
c. If share prices increases to $17 per share, what will be your profit (loss) in dollars and in percentage. (10 points)
d. If share prices decreases to $12 per share, what will be your profit (loss) in dollars and in percentage. (10 points)
e. At what price margin call will be issued?
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