Cristiano Ronaldo sells short 200 shares of common stock at $40 per share. One year later, he purchases the shares at $50 per share. If you knew that the initial margin is 80%, calculate the new margin. a. 77% b. 44% C. 88% d. 55%
Cristiano Ronaldo sells short 200 shares of common stock at $40 per share. One year later, he purchases the shares at $50 per share. If you knew that the initial margin is 80%, calculate the new margin. a. 77% b. 44% C. 88% d. 55%
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 2PROB
Related questions
Question
Cristiano Ronaldo sells short 200 shares of common stock at $40 per share. One year later, he purchases the shares at $50 per share. If you knew that the initial margin is 80%, calculate the new margin.
a. 77%
b. 44%
C. 88%
d. 55%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT