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6. You sell short 250 shares of BNO that are currently selling at $72 per share. You post the 50% margin required on the shor
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Answer #1

Value of short = 250 x 72 = 18,000

Equity = 18,000 x 50% = 9,000

You will get a margin call when the value of equity is 40% of the total value

Value of short = 9,000 / 40% = 22,500

Stock Price = 22,500 / 250 = $90.

Hence, you will get a margin call when the stock price is $90 or higher.

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