in facility for a short sale, Stella sold 200 lots of TULIPS shares at a price of $7,000. Initial margin and margin call are 50% and 25%, respectively. If then the price of TULIPS drops to $6,000 and ignores transaction fees, how much cash can Stel
in facility for a short sale, Stella sold 200 lots of TULIPS shares at a price of $7,000. Initial margin and margin call are 50% and 25%, respectively. If then the price of TULIPS drops to $6,000 and ignores transaction fees, how much cash can Stel
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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Using the margin facility for a short sale, Stella sold 200 lots of TULIPS shares at a price of $7,000. Initial margin and margin call are 50% and 25%, respectively. If then the price of TULIPS drops to $6,000 and ignores transaction fees, how much cash can Stella take?
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