You believe that Rose, Inc., stock is going to fall and you have decided to sell 800 shares short. If the current share price is $47. The initial margin is 60%. A] Construct an equity balance sheet for the company. B] Repeat question a if stock price is $40 and the stock pricde is $55. C] What is your margin at each of this stock price?
You believe that Rose, Inc., stock is going to fall and you have decided to sell 800 shares short. If the current share price is $47. The initial margin is 60%. A] Construct an equity balance sheet for the company. B] Repeat question a if stock price is $40 and the stock pricde is $55. C] What is your margin at each of this stock price?
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 believe that Rose, Inc., stock is going to fall and you have decided to sell 800 shares short. If the current share price is $47. The initial margin is 60%.
A] Construct an equity balance sheet for the company.
B] Repeat question a if stock price is $40 and the stock pricde is $55.
C] What is your margin at each of this stock price?
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