You are bearish on Telecom and decide to sell short 100 shares at the current market price of $34 per share. Required: 3. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Initial margin $ 1,700 D. 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 Dosition? (Round your answer to 2 decimal places.) Stock price reaches +
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $34 per share. Required: 3. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Initial margin $ 1,700 D. 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 Dosition? (Round your answer to 2 decimal places.) Stock price reaches +
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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Transcribed Image Text:You are bearish on Telecom and decide to sell short 100 shares at the current market price of $34 per share.
Required:
a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the
value of the short position?
Initial margin. $ 1,700
b. 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? (Round your answer to 2 decimal places.)
Stock price reaches
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