Assume you sold short 100 shares of common stock at $40 per share. The initial...
80.2K
Verified Solution
Link Copied!
Question
Finance
Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50% and the maintenance margin is 20%. At what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.
A.
$40
B.
$50
C.
$33.33
D.
$75
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
