Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You sold short 100 shares of common stock at $45 per share. The initial margin is 50%. At what stock price would you receive a

You sold short 100 shares of common stock at $45 per share. The initial margin is 50%. At what stock price would you receive a margin call if the maintenance margin is 35%?

A.

$40

B.

$50

C.

$35

D.

$65

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

Entrepreneurial Finance

Authors: Simon Hulme, Chris Drew

1st Edition

1352009811, 978-1352009811

More Books

Students also viewed these Finance questions

Question

Explain strong and weak atoms with examples.

Answered: 1 week ago

Question

Explain the alkaline nature of aqueous solution of making soda.

Answered: 1 week ago

Question

Comment on the pH value of lattice solutions of salts.

Answered: 1 week ago