Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with an initial margin of 60.00% and a maintenance margin of 20.00%. You short sell 100 shares, posting margin accordingly. The broker charges you no interest on the account. OKComputer pays no dividends. How high would the stock price have to rise in order for you to face a margin call? $42.35 $95.28 $38.12 $44.47

Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with an initial margin of 60.00% and a maintenance margin of 20.00%. You short sell 100 shares, posting margin accordingly. The broker charges you no interest on the account. OKComputer pays no dividends. How high would the stock price have to rise in order for you to face a margin call? $42.35 $95.28 $38.12 $44.47

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter26: Mergers And Corporate Control

Section: Chapter Questions

Problem 7MC

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