You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. How much additional cash must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Enter your answer without the dollar sign How high can the price of the stock go before you get a margin call if the maintenance margin is 25% of the value of the short position? Round your answer to two decimal places and enter it without dollar sign
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. How much additional cash must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Enter your answer without the dollar sign How high can the price of the stock go before you get a margin call if the maintenance margin is 25% of the value of the short position? Round your answer to two decimal places and enter it without dollar sign
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 5P
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You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.
How much additional cash must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? Enter your answer without the dollar sign
How high can the price of the stock go before you get a margin call if the maintenance margin is 25% of the value of the short position? Round your answer to two decimal places and enter it without dollar sign.
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