You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. a. How much in cash or securities must you put into your brokerage account if the broker’s...


You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.
a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position?
The Initial Margin is $ Blank 1. Fill in the blank, read surrounding text.
Please use only accepted characters within numeric response fields.
.
b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?
A margin call will be issued when price is $ Blank 2. Fill in the blank, read surrounding text.
or higher.



Jun 09, 2022
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