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Suppose that you shorted 100 shares of stock XYZ. The initial margin requirement is 50%, and the maintenance margin is 3
Posted: Sun Jun 05, 2022 9:59 am
by answerhappygod
- Suppose That You Shorted 100 Shares Of Stock Xyz The Initial Margin Requirement Is 50 And The Maintenance Margin Is 3 1 (15.32 KiB) Viewed 29 times
Suppose that you shorted 100 shares of stock XYZ. The initial margin requirement is 50%, and the maintenance margin is 30%. It is currently selling for $50 a share. After shorting the stock, the price drops to $35. (show your work and highlight you answer) 1. What is the new margin %? Is there a margin call? 2. at what price would a margin call occur?