1.
Current price of stock (S0) = $30
Intial margin requirement (IMR) = 40%
Maintenance margin requirement (MMR) = 35%
Stock Price that will trigger Margin call for short Postion:
2.
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
please answer question one and question two and show all work Question 1 (20 points) Suppose...
Question 1 (20 points) Suppose you wish to sell short 150 shares of Boeing Co (NYSE BA). The current selling price per share is $30. The initial margin requirement for the short sell is 40%. The broker requires a 35% maintenance margin, please calculate the stock price that will trigger a margin call.
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