You sell short 340 shares of Doggie Treats Inc. Which are currently selling at $27 per share. You post the 52% margin required on the short sale. If yourbroker requires a 26% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account andthe firm does not pay any dividends)Multiple Choice$56,57$32.57$22.57$27.57

Stock price = $27 Margin = 52%. Margin Amount = Stock price * margin % = $27 × 52% = $14.04

Answered: You sell short 340 shares of Doggie…

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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