Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You took a short position on 100 shares at $68. You have equity of $4,500. Assets Liabilities and Equity Short position in stock (owe 100

image text in transcribed
You took a short position on 100 shares at $68. You have equity of $4,500. Assets Liabilities and Equity Short position in stock (owe 100 shares) $6,800 Cash $11,300 Equity $4,500 What is the initial margin? 66.18% How far can the price change before a margin call if the maintenance margin is 45%? [Select) $65.87 $67.14 $77.93 $72.29 $80.64

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

Parimutuel Applications In Finance New Markets For New Risks

Authors: Ken Baron, Jeffrey Lange

1st Edition

1403939500, 9781403939500

More Books

Students also viewed these Finance questions