ear ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a year, Stock Z pays a yearly dividend of $4 per share, and the interest rate is 10%. What price would you get a margin call if the maintenance margin is 30%
ear ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a year, Stock Z pays a yearly dividend of $4 per share, and the interest rate is 10%. What price would you get a margin call if the maintenance margin is 30%
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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A year ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a year, Stock Z pays a yearly dividend of $4 per share, and the interest rate is 10%.
What price would you get a margin call if the maintenance margin is 30%?
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