Question
You sold short 1,000 shares of a stock at $46 per share. The initial margin is 50%. a) At what stock price would you receive
You sold short 1,000 shares of a stock at $46 per share. The initial margin is 50%.
a) At what stock price would you receive a margin call if the maintenance margin is 35%? (do not consider dividends in question a)
b) Assume that the stock paid a $0.25 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $40 per share at the end of the quarter?
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Renewable Energy Finance Funding The Future Of Energy
Authors: Charles W Donovan
2nd Edition
1786348594, 9781786348593
