You are bearish on Apple stock and decide to sell short 478 shares at the current market price of $109.36 per share. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? The initial margin is 55%. Group of answer choices 124.22 130.39 98.80 135.67 134.30
You are bearish on Apple stock and decide to sell short 478 shares at the current market price of $109.36 per share. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? The initial margin is 55%. Group of answer choices 124.22 130.39 98.80 135.67 134.30
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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You are bearish on Apple stock and decide to sell short 478 shares at the current market price of $109.36 per share. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? The initial margin is 55%.
Group of answer choices
124.22
130.39
98.80
135.67
134.30
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