Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

You short sold 600 shares of stock at a price of $37 and an initial margin of 80 percent. If the maintenance margin is 40

You short sold 600 shares of stock at a price of $37 and an initial margin of 80 percent. If the maintenance margin is 40 percent, at what share price will you receive a margin call? What is your account equity at this stock price?(Do not round intermediate calculations. Round Margin call price to 2 decimal places. Omit the "$" sign in your response.)

Margin Call Price-

Account Equity-

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Introduction to Java Programming, Comprehensive Version

Authors: Y. Daniel Liang

10th Edition

978-0133761313

Students also viewed these Finance questions