Question
You tell your broker to sell 1,000 shares at $100 ($100,000) and 50% margin requirement on short sales. You have $50,000 T-bills. If maintenance margin
You tell your broker to sell 1,000 shares at $100 ($100,000) and 50% margin requirement on short sales. You have $50,000 T-bills. If maintenance margin on short sales = 30%. This means the equity in your account must be at least 30% 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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Get StartedRecommended Textbook for
Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
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