Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You sold short 300 shares of common stock at $60 per share. The initial margin is 50%. At what stock price would you receive a

You sold short 300 shares of common stock at $60 per share. The initial margin is 50%. At what stock price would you receive a margin call if the maintenance margin is 25%? A) $54 B) $68 C) $45 D) $72 E) none of the above I know the answer is D but I would like to know the formula and how its calculated. Thanks

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

Financial Valuation

Authors: James R. Hitchner

4th Edition

1119286603, 978-1119286608

More Books

Students also viewed these Finance questions

Question

5. Identify three characteristics of the dialectical approach.

Answered: 1 week ago