Question

Intro You decide to sell short 340 shares at a price of $60 each. The initial...

Intro

You decide to sell short 340 shares at a price of $60 each. The initial margin requirement is 50%.

Attempt 1/1 for 10 pts.

Part 1

How much money do you have to contribute to the account?

Move on

Attempt 1/1 for 10 pts.

Part 2

If the price rises to $75 after 5 months, what is the new percentage margin?

3+ Decimals

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Homework Answers

Answer #1

  

_______________________________

_______________________________

Answer 1)

own investment = Total Investment - (Total investment * Margin)

= 340* 60 - ((340*60) * 50%)

= 20400 - 10200

= 10200

Answer 2)

New % Margin = Margin / New Total Value

= 10200 / 340 * 75

= 10200 / 25500

= 40%

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