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You sold short 500 shares of XYZ stock currently priced at $100. Your initial margin requirement was 50%. If interest rate is 0% and the
You sold short 500 shares of XYZ stock currently priced at $100. Your initial margin requirement was 50%. If interest rate is 0% and the stock is selling at $115, would you receive a margin call after one year? Assume that the maintenance margin requirement is 35%. Ignore transactions costs. No, because margin is 36%. Yes, because margin is 30%. No, because margin is 30%. Yes, because margin is 36%
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