You are bearish on Apple stock and decide to sell short 478 shares at the current market price of $109.36 per share. 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? The initial margin is 55%. Group of answer choices 124.22 130.39 98.80 135.67 134.30
You are bearish on Apple stock and decide to sell short 478 shares at the current market price of $109.36 per share. 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? The initial margin is 55%. Group of answer choices 124.22 130.39 98.80 135.67 134.30
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 5LTAI
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Question
You are bearish on Apple stock and decide to sell short 478 shares at the current market price of $109.36 per share. 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? The initial margin is 55%.
Group of answer choices
124.22
130.39
98.80
135.67
134.30
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