Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with an initial margin of 60.00% and a maintenance margin of 20.00%. You short sell 100 shares, posting margin accordingly. The broker charges you no interest on the account. OKComputer pays no dividends. How high would the stock price have to rise in order for you to face a margin call? $42.35 $95.28 $38.12 $44.47
Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with an initial margin of 60.00% and a maintenance margin of 20.00%. You short sell 100 shares, posting margin accordingly. The broker charges you no interest on the account. OKComputer pays no dividends. How high would the stock price have to rise in order for you to face a margin call? $42.35 $95.28 $38.12 $44.47
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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Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with an initial margin of 60.00% and a maintenance margin of 20.00%. You short sell 100 shares, posting margin accordingly. The broker charges you no interest on the account. OKComputer pays no dividends. How high would the stock price have to rise in order for you to face a margin call?
$42.35 |
||
$95.28 |
||
$38.12 |
||
$44.47 |
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