Question A, B & C please. A study guide question. Suppose you sell short Tesla which is currently trading at $300 per share. You put $30,000 as cash into your brokerage account with an initial margin...


Question A, B & C please. A study guide question.


Suppose you sell short Tesla which is currently trading at $300 per share. You put $30,000 as cash into your brokerage account with an initial margin of 50%.  The maintenance margin is 35%.


a)How many shares of Tesla can you sell short?


b)How far can the stock price increase before you get a margin call?


c)Assume Tesla pays a dividend of $10 per share after you sell it short. At what price, will you get a margin call?



Jun 07, 2022
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