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Your investment account hast the following terms: Short sales possible Initial Margin Requirement = 50% Maintenance Margin Requirement = 35% You have placed an order
Your investment account hast the following terms: Short sales possible Initial Margin Requirement = 50% Maintenance Margin Requirement = 35% You have placed an order to sell short 1000 shares @$50
1. What is the amount of cash or other securities that you have to put to your account?
2. What is the price at which a margin call occurs?
3. The value of the stock goes up to $60 and you do not want to liquidate the position. How much extra money do you need to put into your account?
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