d short 700 shares of XYZ Company at $43 per share. The initial margin requirement was 60%. (The margin account pays no interest.) How high can the price of the stock go before you get a margin call if the maintenance margin is 25%
d short 700 shares of XYZ Company at $43 per share. The initial margin requirement was 60%. (The margin account pays no interest.) How high can the price of the stock go before you get a margin call if the maintenance margin is 25%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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ABC Traders sold short 700 shares of XYZ Company at $43 per share. The initial margin requirement was 60%. (The margin account pays no interest.) How high can the price of the stock go before you get a margin call if the maintenance margin is 25% of the value of the short position?
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