ear ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a year, Stock Z pays a yearly dividend of $4 per share, and the interest rate is 10%. What price would you get a margin call if the maintenance margin is 30%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 17P
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A year ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a year, Stock Z pays a yearly dividend of $4 per share, and the interest rate is 10%.

What price would you get a margin call if the maintenance margin is 30%?

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