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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Question
a trader is short 57 shares of overpriced.com at 16.92 pershare. Initial margin requirements are 46% and maintenance margin is 30%. How many money is deposited in the account at the time that trade is executed?
Expert Solution
Step 1: Define=initial margin
Initial margin is the beginning amount of money required in a broker account to start trading in the market.
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