eBook Problem 3-15 Short Position Margin Assume an investor shorted 1,000 shares of Company Y at $23.50 using a 50% margin. Following a sharp rise in the stock to $30.55, the investor has received a maintenance margin call. At this point, the investor is required to wire sufficient funds to bring account equity back to 50%. This information is summarized in the following table: Price $23.50 Shares Initial Margin New Price 1,000 50% $30.55 How much in additional funds must be added to the account to bring account equity back to 50%? Additional funds in the amount of $ must be added to the account. Round your answer to the nearest cent.
eBook Problem 3-15 Short Position Margin Assume an investor shorted 1,000 shares of Company Y at $23.50 using a 50% margin. Following a sharp rise in the stock to $30.55, the investor has received a maintenance margin call. At this point, the investor is required to wire sufficient funds to bring account equity back to 50%. This information is summarized in the following table: Price $23.50 Shares Initial Margin New Price 1,000 50% $30.55 How much in additional funds must be added to the account to bring account equity back to 50%? Additional funds in the amount of $ must be added to the account. Round your answer to the nearest cent.
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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eBook
Problem 3-15 Short Position Margin
Assume an investor shorted 1,000 shares of Company Y at $23.50 using a 50% margin. Following a sharp rise in the stock to $30.55, the investor has received a
maintenance margin call. At this point, the investor is required to wire sufficient funds to bring account equity back to 50%. This information is summarized in the
following table:
Price
$23.50
Shares Initial Margin
1,000
50%
New Price
$30.55
How much in additional funds must be added to the account to bring account equity back to 50%?
Additional funds in the amount of $
must be added to the account. Round your answer to the nearest cent.
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