You sold short 100 shares of common stock at $75 per share. The initial margin is 50%. At what stock price would you receive a margin call if the maintenance margin is 30%?
A. $90.23
B. $88.52
C. $86.54
D. $87.12
C. $86.54
Equity = 100($75) × 1.5 = $11,250; 0.30 = ($11,250 – 100P)/100P; 30P = $11,250 – 100P; 130P = $11,250; P = $86.54.
You might also like to view...
Greenfoods, a manufacturer of ready-to-eat foods, conducts over 60,000 customer surveys each month through its retail outlets. What risk is Greenfoods likely to face by putting out so many surveys each month?
What will be an ideal response?
The balanced scorecard measures
A) only financial information B) only nonfinancial information C) both financial and nonfinancial information D) external and internal information
When organizations leverage technical expertise to develop innovative products, they perform
the value chain activity of ________. A) infrastructure B) operations C) technological development D) procurement
The ability to carry your retirement benefits from one plan to another when changing employers is called:
a. portability b. vesting c. defined benefit d. defined contribution e. carrying