Last week, you sold 400 shares of Hi-Lo stock for $12,400. The sale was a short...

Question

Question

Answer 1

Answer #1

ANSWER = 38.68%

No. of shares = 400

Sale proceeds = $12400

Initial margin requirement = 70% = 70% x 12400 = $8680

Current share price = $38

Short position = No. of shares x Current share price = 400 x 38 = 15200

Total equity = Sales proceeds + Initial margin requirement - Short position

= 12400 + 8680 - 15200

= $5880

Current margin position = (Total equity / Short position) x 100

= (5880 / 15200) x 100

= 38.68%

Answer 2

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