You short sold 350 shares of stock at a price of $32 and an initial margin...

Question

Question

You short sold 350 shares of stock at a price of $32 and an initial margin of 60 percent. If the maintenance margin is 30 per

Answer 1

Answer #1

Margin Call Price = 32(1 + 0.60)/(1 + 0.30)

Margin Call Price = $39.38

Account Equity = 350(32)(0.60) - 350(39.38 - 32)

Account Equity = $4,137

Answer 2

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