Given for Stock Telecom,
Current market price = $36 per share
Shares short = 100 share
so. total portfolio value = 36*100 = $3600
a). Since initial margin = 50%, then own fund = 50% of portfolio value
So, own fund investment = 0.5*3600 = $1800
b). If maintenance margin = 30%
We know that maintenance margin = own fund/ portfolio value
Let value of stock at maintenance margin be X
Loss = 100X - 3600
Own fund = 1800 - (100X - 3600) = 5400 - 100X
Portfolio value = 3600 - (100X - 3600) = 7200 - 100X
So, 0.30 = (5400 - 100X)/(7200 - 100X) => X = $46.29
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