(Answered)-8. You are bearish on Telecom and decide to sell short 100 shares at the current market price of...

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8.   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? b.   How high can the price of the stock go before you get a margin call if the mainte- nance margin is 30% of the value of the short position?    

 

Solution ID:10137760 | Question answered on 16-Oct-2016

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