Question
You tell your broker to sell 1,000 shares @$100 ($100,000) and 50% margin requirement on short sales. You have $50,000 T-bills. If maintenance margin on
You tell your broker to sell 1,000 shares @$100 ($100,000) and 50% margin
requirement on short sales. You have $50,000 T-bills.
If maintenance margin on short sales = 40%. This means the equity in your
account must be at least 40% of the value of your short position at all times.
How far could the stock price RISE before the investor would get margin call?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
