Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

your friend danny deposits $ 2 5 0 , 0 0 0 cash in a brokerage in order to short sell $ 3 3 0

your friend danny deposits $250,000 cash in a brokerage in order to short sell $330,000 of stocks on margin. The broker requires a maintenance margin of 35 percent. Later, the value of the stocks held short rises to $356,000. What is the new account margin in percent? Will there be a margin call? A.68.42%, No, B.40.45%, No, C.77.53%, No, D.62.92%, No

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 Markets And Institutions

Authors: Frederic S. Mishkin, Stanley G. Eakins

7th Edition

013213683X, 978-0132136839

More Books

Students also viewed these Finance questions

Question

briefly define the following used in accounting

Answered: 1 week ago