Question #2 (a) Assume that you are planning to short sell 2,000 shares of Abyss Inc. The stock currently sells for $20

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Question #2 (a) Assume that you are planning to short sell 2,000 shares of Abyss Inc. The stock currently sells for $20

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Question 2 A Assume That You Are Planning To Short Sell 2 000 Shares Of Abyss Inc The Stock Currently Sells For 20 1
Question 2 A Assume That You Are Planning To Short Sell 2 000 Shares Of Abyss Inc The Stock Currently Sells For 20 1 (96.19 KiB) Viewed 33 times
Question #2 (a) Assume that you are planning to short sell 2,000 shares of Abyss Inc. The stock currently sells for $20 per share. The initial margin requirement is 57%. When you complete the trade, how much cash will you have to leave at your broker? (b) Assume that the stock falls to $15 per share. Prepare your balance sheet assuming this is the only holding in your margin account. (c) How high could the price of Abyss stock rise before you would receive a margin call if the maintenance margin requirement is 35%?
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