Transcribed Image Text
Assume you sell short 100 shares of Shell Corp. at $100 pershare, with initial margin at 45%. The minimum margin requirementis 30%. The stock will pay no dividends during the period, and youwill not remove any money from the account before making theoffsetting transaction.At what price would you face a margin call?If the price is $110 at the end of the period, what is yourmargin ratio at that point?
Other questions asked by students
Basic Math
Accounting
Basic Math
Accounting
Accounting